The family of GABA A receptors is an important drug target group in the treatment of sleep disorders, anxiety, epileptic seizures and many others. The most frequent GABA A receptor subtype is composed of two α, two β and one γ2-subunit, while the nature of the α-subunit critically determines the properties of the benzodiazepine binding site of those receptors. Nearly all of the clinically relevant drugs target all GABA A receptor subtypes equally. In the past years, however, drug development research has focused on studying α5-containing GABA A receptors. Beyond the CNS, α5-containing GABA A receptors in airway smooth muscles are considered as emerging target for bronchial asthma. Here, we investigated a novel compound derived from the previously described imidazobenzodiazepine SH-053-2′F-R-CH3 (SH53d-ester). While SH53d-ester is only moderately selective for α5-subunit containing GABA A receptors, the derivative SH53d-acid shows superior (>40-fold) affinity selectivity, and is a positive modulator. Using two-electrode voltage clamp electrophysiology in Xenopus laevis oocytes and radioligand displacement assays with HEK 293 cells, we demonstrated that an acid group as substituent on the imidazobenzodiazepine scaffold leads to large improvements of functional and binding selectivity for α5β3γ2 over other αxβ3γ2 GABA A receptors. Atom level structural studies provide hypotheses for the improved affinity to this receptor subtype. Mutational analysis confirmed the hypotheses, indicating that loop C of the GABA A receptor α-subunit is the dominant molecular determinant of drug selectivity. Thus, we characterize a promising novel α5-subunit-selective drug candidate.