1 These experiments were carried out to test whether neuronal M 2 muscarinic receptor function in the lungs is aected by nitric oxide (NO) and whether the source of the NO is epithelial or neuronal. 2 In pathogen free, anaesthetized guinea-pigs, the muscarinic agonist pilocarpine inhibited vagally induced bronchoconstriction demonstrating functional neuronal M 2 muscarinic receptors. In the presence of the NO donor, 3-morpholino-sydnonimine (SIN-1), pilocarpine no longer inhibited vagally induced bronchoconstriction. In contrast, inhibiting endogenous NO with N G -monomethyl-L-arginine methyl ester (L-NMMA) did not aect the ability of pilocarpine to decrease vagally induced bronchoconstriction. 3 In isolated tracheas, pilocarpine inhibited contractions induced by electrical ®eld stimulation demonstrating that neuronal M 2 muscarinic receptors function in vitro. As in the anaesthetized guinea-pigs, SIN-1 shifted the pilocarpine dose response curve to the right, demonstrating decreased neuronal M 2 receptor function. However, in vitro, L-NMMA shifted the pilocarpine dose response curve to the left, demonstrating that endogenous NO was inhibiting the ability of the M 2 receptors to decrease acetylcholine (ACh) release. 4 Both haemoglobin (Hb), which scavenges NO, and epithelial removal also shifted the pilocarpine dose response curve to the left, demonstrating that the NO inhibiting neuronal M 2 receptor function was extracellular and probably of epithelial origin. 5 In conclusion, extracellular NO appears to inhibit the ability of the M 2 receptors to decrease ACh release from the parasympathetic nerves in the lungs in vivo and in vitro in pathogen free guinea-pigs. However, while the neuronal M 2 receptors will respond to NO (from SIN-1) in vivo, there does not appear to be an endogenous source of NO since L-NMMA had no eect in vivo.