ATP-sensitive K+(KATP) channels link metabolic state to cell excitability. Here, we examined regulation of KATPchannels in substantia nigra dopamine neurons by hydrogen peroxide (H2O2), which is produced in all cells during aerobic metabolism. Blockade of KATPchannels by glibenclamide (100 nm) or depletion of intracellular H2O2by including catalase, a peroxidase enzyme, in the patch pipette increased the spontaneous firing rate of all dopamine neurons tested in guinea pig midbrain slices. Using fluorescence imaging with dichlorofluorescein to visualize intracellular H2O2, we found that moderate increases in H2O2during partial inhibition of glutathione (GSH) peroxidase by mercaptosuccinate (0.1-0.3 mm) had no effect on dopamine neuron firing rate. However, with greater GSH inhibition (1 mmmercaptosuccinate) or application of exogenous H2O2, 50% of recorded cells showed KATPchannel-dependent hyperpolarization. Responsive cells also hyperpolarized with diazoxide, a selective opener for KATPchannels containing sulfonylurea receptor SUR1 subunits, but not with cromakalim, a selective opener for SUR2-based channels, indicating that SUR1-based KATPchannels conveyed enhanced sensitivity to elevated H2O2. In contrast, when endogenous H2O2levels were increased after inhibition of catalase, the predominant peroxidase in the substantia nigra, with 3-amino-1,2,4-triazole (1 mm), all dopamine neurons responded with glibenclamide-reversible hyperpolarization. Fluorescence imaging of H2O2indicated that catalase inhibition rapidly amplified intracellular H2O2, whereas inhibition of GSH peroxidase, a predominantly glial enzyme, caused a slower, smaller increase, especially in nonresponsive cells. Thus, endogenous H2O2modulates neuronal activity via KATPchannel opening, thereby enhancing the reciprocal relationship between metabolism and excitability.