In recent years progress in basic neuropsychopharmacology and clinical addiction research have allowed the conclusion that tobacco smoking essentially represents an addiction to nicotine. Parallel to this work, experimental research in biochemistry, physiology and pharmacology has provided detailed descriptions of the structure and function of the nicotinic receptor, the biologic mediator of the many actions of nicotine. This article reviews current knowledge of nicotinic mechanisms in the peripheral and central nervous systems as well as some implications for the notion of smoking as an addiction to nicotine. In particular this review will focus on the effects of nicotine on brain dopamine and noradrenaline systems since these neuronal systems appear to be crucially involved in the rewarding and stimulant effects of addictive drugs.