Mutualisms, such as the ones between ants and aphids, evolve and persist when benefits outweigh the costs from the interactions between the partners. We show here that the trail pheromone of the red imported fire ant, Solenopsis invicta, can enhance these benefits by suppressing aphid dispersal and stimulating their reproduction. The ant\'s mutualistic partner, the cotton aphid Aphis gossypii, was found to readily perceive and respond to two specific trail pheromone components. Two pheromone components, Z,E-α-farnesene and E,E-α-farnesene, both suppressed walking dispersal of apterous aphids, whereas only the major pheromone component, Z,E-α-farnesene, also increased aphid reproduction rate. The ants, as well as the aphids, benefit from this inter-species function of the trail pheromone. For the ants it increases and prolongs the availability of honeydew as a key food source, whereas the aphid colony benefits from faster population growth and continuous ant-provided protection. These findings reveal a hitherto unknown mechanism by which ants and aphids both increase the benefits that they provide to each other, thereby likely enhancing the stability of their mutualistic relationship.