We classify the irreducible restricted modules for the affine Nappi-Witten Lie algebra H4 with some natural conditions. It turns out that the representation theory of H4 is quite different from the theory of representations of Heisenberg algebras. We also study the extension of the vertex operator algebra VH4 (e, 0) by the even lattice L. We give the structure of the extension VH4 (e, 0) [L] and its irreducible modules via irreducible representations of VH4(e, 0) viewed as a vertex algebra.