Despite evidence that smoking confers protection against neurological disorders, how and whether specific nicotinic receptor subtypes are involved is unknown. We reported previously that nicotine suppresses constitutive nuclear factor B (NF-B) activity and thereby proinflammatory cytokine (PIC) production in SHEP1 cells stably transfected with ␣42 nicotinic receptors. Here, we report the anti-inflammatory effects of nicotine pretreatment in lipopolysaccharide (LPS)-stimulated SHEP1 cells. Nicotine (100 -300 nM, concentrations found in smoker's blood) blocked LPS-induced NF-B translocation and production of PICs interleukin (IL)-1 and IL-6 but only partially blocked inhibitor of nuclear factor-B␣ (IB␣) phosphorylation. These effects were exclusively in cells transfected with ␣42 receptors but not in wild types. The cell-permeable calcium chelator 1,2-bis(2-aminophenoxy)ethane-N,N,NЈ,NЈ-tetraacetic acid-acetoxymethyl ester, the adenylate cyclase stimulant forskolin, and a specific protein kinase A (PKA) inhibitor PKI 14-22-amide failed to block the effect of nicotine on LPS-induced NF-B translocation and IB␣ phosphorylation. However, the effects of nicotine on NF-B activity were significantly blocked by the highly specific janus kinase 2 (JAK2) inhibitor ␣-cyano-(3,4-dihydroxy)-N-benzylcinnamide (AG-490) and the signal transducer and activator of transcription 3 (STAT3) inhibitor 2-hydroxy-4- [[[[(4-methylphenyl)sulfonyl]oxy]acetyl]amino]-benzoic acid (NSC74859). These findings reveal a calcium-and cAMP-PKA-independent signaling cascade and suggest a role for JAK2-STAT3 transduction in ␣42-mediated attenuation of LPS-induced inflammation. Anti-inflammatory effects of nicotine may therefore be mediated through ␣42 receptors, the predominant high-affinity binding sites for nicotine in the central nervous system, in addition to the better-established ␣7 receptors.