IFN-γ is essential for control of Mycobacterium tuberculosis infection in vitro and in vivo. However, the mechanisms by which IFN-γ controls infection remain only partially understood. One of the crucial IFN-γ target genes required for control of M. tuberculosis is Inducible nitric oxide synthase (iNOS). While nitric oxide (NO) produced by iNOS is thought to have direct bactericidal activity against M. tuberculosis, the role of NO as a signaling molecule has been poorly characterized in the context M. tuberculosis infection. Here, we find that iNOS broadly regulates the macrophage transcriptome during M. tuberculosis infection, activating antimicrobial pathways while also limiting inflammatory cytokine production. The transcription factor Hypoxia inducible factor-1α (HIF-1α) was recently shown to be critical for IFN-γ mediated control of M. tuberculosis infection. We find that HIF-1α function requires NO production, and that HIF-1α and iNOS are linked by a positive feedback loop that amplifies macrophage activation. Furthermore, we find that NO inhibits NF-kB activity to prevent hyper-inflammatory responses. Thus, NO activates robust microbicidal programs while at the same time limiting damaging inflammation. IFN-γ signaling must carefully calibrate an effective immune response that does not cause excessive tissue damage, and this work identifies NO as a key player in establishing this balance during M. tuberculosis infection.