The gonococcal adenine methylase modB , belonging to a Type III restriction modification system, is phase variable, but both the frequency of phase variation and phenotypic impact of phase variation is largely unknown.Here we show that modB switches between the ON and OFF states at a high frequency, with multiple transition events identified over the time scale of a single outbreak. Expanding our analyses, we find a clear association between modB status and azithromycin susceptibility.Among isolates lacking canonical 23S and mtrR promoter mutations, carrying modB in the ON configuration is strongly associated with increased azithromycin minimum inhibitory concentrations. Our findings suggest that modB adenine methylation controls the expression of genes modulating azithromycin susceptibility.1 Importance Despite significant progress, our current understanding of the genetic basis of antibiotic susceptibility remains incomplete. The gonococcal methylase modB is phase variable, meaning that it can be switched ON or OFF via contraction or expansion of a repeat tract in the gene. We find that transitions between the ON and OFF state occur at high frequency. Among strains lacking well-known resistance mutations, a functional modB was found to be associated with decreased susceptibility to azithromycin, a key drug used to treat gonorrhea. This finding brings us a step closer to a full understanding of the genetic underpinnings of antibiotic resistance.