There is a growing interest among teachers and researchers in understanding how language development occurs through interactions in classrooms and other teaching-learning settings. This paper aims at comparing the role of environmental language in the shape of peer-interaction snd teacher- scaffolding in promoting second language vocabulary knowledge. For this purpose 36 intermediate learners who had passed PET exam were randomly divided in three groups. Group one was taught throuh teacher-scaffolding, group two was conducted through peer-negotiation and the third group which was the control group received neither of these interventions and participants were working individually on the tasks. The selection of groups for different treatments had been done randomly. Al groups sat for a pre-test, three-session vocabulary course, immediate post-test and delayed post-test. Split-Plot Analysis of Variance (SPANOVA) run on the data revealed that peer-negotiation resulted in more vocabulary learning than teacher-scaffolding which in turn leads to more retention of vocabulary than peer-negotiation.