Vision-Language Models (VLMs) excel at tasks such as image captioning and visual question answering but frequently produce hallucinated outputs that deviate from the actual visual input or prompt. While prior work links hallucination to biases in data or representation, their causal origins remain unclear. We propose a causal framework to analyze and mitigate hallucination in VLMs. Our key hypothesis is that hallucinations arise from unintended direct influences of the vision or text modality that bypass the intended multi-modal fusion. To examine this, we construct a causal graph of the VLM and use counterfactual analysis to estimate the Natural Direct Effect (NDE) of each modality and their interaction. By systematically identifying and suppressing these direct effects, we encourage outputs that are more faithfully grounded in true cross-modal reasoning. Our approach consists of three steps: (1) designing structural causal graphs to distinguish correct fusion pathways from spurious modality shortcuts, (2) estimating modality-specific and cross-modal NDE using perturbed image representations, hallucinated text embeddings, and degraded visual inputs, and (3) implementing a test-time intervention module to dynamically adjust the model’s dependence on each modality. Experimental results demonstrate that our method significantly reduces hallucination while preserving task performance, providing a robust and interpretable framework for improving VLM reliability.