Little is known about how prior beliefs impact biophysically described processes in the presence of neuroactive drugs, which presents a profound challenge to the understanding of the mechanisms and treatments of addiction. We engineered smokers' prior beliefs about the presence of nicotine in a cigarette smoked before a functional magnetic resonance imaging session where subjects carried out a sequential choice task. Using a model-based approach, we show that smokers' beliefs about nicotine specifically modulated learning signals (value and reward prediction error) defined by a computational model of mesolimbic dopamine systems. Belief of "no nicotine in cigarette" (compared with "nicotine in cigarette") strongly diminished neural responses in the striatum to value and reward prediction errors and reduced the impact of both on smokers' choices. These effects of belief could not be explained by global changes in visual attention and were specific to value and reward prediction errors. Thus, by modulating the expression of computationally explicit signals important for valuation and choice, beliefs can override the physical presence of a potent neuroactive compound like nicotine. These selective effects of belief demonstrate that belief can modulate modelbased parameters important for learning. The implications of these findings may be far ranging because belief-dependent effects on learning signals could impact a host of other behaviors in addiction as well as in other mental health problems.O ne materialist view of mental function suggests that even the most abstract beliefs can be represented in terms of physiological states available to the brain (1). These mappings are critical in conditions like drug addiction, where our ignorance of how prior beliefs about drugs influence physiological processes related to drugs of abuse presents a profound challenge to the understanding of the mechanism and treatment of addiction (2, 3). Although extensive work has shown that addictive drugs act on the mesolimbic dopaminergic (DA) pathway (2, 4), it has become clear that these purely biochemical explanations are not sufficient to account for the huge heterogeneity among drug-dependent individuals and the low success rate of quitting and remaining drug-free (2, 5) and that cognitive factors such as beliefs and expectations have a profound impact on drug-related neurobiological effects (6, 7).Beliefs are known to contribute to the placebo effect. The placebo effect is a treatment effect not caused by the physical presence of an active drug, but rather by the meaning ascribed to it and the subjective expectation of receiving a treatment (8, 9). A subject's belief that he or she is receiving a treatment could lead to observable improvement even in the absence of active drugs. These treatment effects are putatively accomplished by neurobiological processes usually associated with pharmacological actions of active drugs, even though active drugs are not administered (10-14). Interestingly, beliefs also directly impact behavioral...