Photo‐control of affinity reagents offers a general approach for high‐resolution spatiotemporal control of diverse molecular processes. In an effort to develop general design principles for a photo‐controlled affinity reagent, we took a structure‐based approach to the design of a photoswitchable Z‐domain, among the simplest of affinity reagent scaffolds. A chimera, designated Z‐PYP, of photoactive yellow protein (PYP) and the Z‐domain, was designed based on the concept of mutually exclusive folding. NMR analysis indicated that, in the dark, the PYP domain of the chimera was folded, and the Z‐domain was unfolded. Blue light caused loss of structure in PYP and a two‐ to sixfold change in the apparent affinity of Z‐PYP for its target as determined using size exclusion chromatography, UV‐Vis based assays, and enyzme‐linked immunosorbent assay (ELISA). A thermodynamic model indicated that mutations to decrease Z‐domain folding energy would alter target affinity without loss of switching. This prediction was confirmed experimentally with a double alanine mutant in helix 3 of the Z‐domain of the chimera (Z‐PYP‐AA) showing >30‐fold lower dark‐state binding and no loss in switching. The effect of decreased dark‐state binding affinity was tested in a two‐hybrid transcriptional control format and enabled pronounced light/dark differences in yeast growth in vivo. Finally, the design was transferable to the αZ‐Taq affibody enabling tunable light‐dependent binding both in vitro and in vivo to the Z‐Taq target. This system thus provides a framework for the focused development of light switchable affibodies for a range of targets.