Acetylcholine activation of α7 nicotinic acetylcholine receptors (α7
nAChR
s) in microglia attenuates neuroinflammation and regulates
TNF
‐α release. We used lipopolysaccharide to model inflammation in the microglial cell line
EOC
20 and examined signaling by the α7
nAChR
. Co‐immunoprecipitation experiments confirm that α7
nAChR
s bind heterotrimeric G proteins in
EOC
20 cells. Interaction with Gαi mediates α7
nAChR
signaling via enhanced intracellular calcium release and a decrease in
cAMP
, p38 phosphorylation, and
TNF
‐α release. These α7
nAChR
effects were blocked by the inhibition of Gαi signaling via pertussis toxin,
PLC
activity with U73122, and α7
nAChR
channel activity with the selective antagonist α‐bungarotoxin. Moreover, α7
nAChR
signaling in
EOC
20 cells was significantly diminished by the expression of a dominant‐negative α7
nAChR
, α7
345‐8A,
shown to be impaired in G protein binding. These findings indicate an essential role for G protein coupling in α7
nAChR
function in microglia leading to the regulation of inflammation in the nervous system.