Etomidate, one of the most potent general anesthetics used clinically, acts at micromolar concentrations as an anesthetic and positive allosteric modulator of ␥-aminobutyric acid responses, whereas it inhibits muscle-type nicotinic acetylcholine receptors (nAChRs) at concentrations above 10 M. We report here that TDBzl-etomidate, a photoreactive etomidate analog, acts as a positive allosteric nAChR modulator rather than an inhibitor, and we identify its binding sites by photoaffinity labeling. TDBzl-etomidate (>10 M) increased the submaximal response to acetylcholine (10 M) with a 2.5-fold increase at 60 M. 3 H]TDBzl-etomidate, and labeled amino acids were identified by Edman degradation. For nAChRs photolabeled in the absence of agonist (resting state), there was tetracaine-inhibitable photolabeling of amino acids in the ion channel at positions M2-9 (␦Leu-265) and M2-13 (␣Val-255 and ␦Val-269), whereas labeling of ␣M2-10 (␣Ser-252) was not inhibited by tetracaine but was enhanced 10-fold by proadifen or phencyclidine. In addition, there was labeling in ␥M3 (␥Met-299), a residue that contributes to the same pocket in the nAChR structure as ␣M2-10. The pharmacological specificity of labeling of residues, together with their locations in the nAChR structure, indicate that TDBzletomidate binds at two distinct sites: one within the lumen of the ion channel (labeling of M2-9 and -13), an inhibitory site, and another at the interface between the ␣ and ␥ subunits (labeling of ␣M2-10 and ␥Met-299) likely to be a site for positive allosteric modulation.