In this paper we report that acetylcholinesterase catalyzes hydrolysis of amides, an observation which had not been made previously. The amide used is an analog of acetylcholine, 2-acetoaminoethyltrimethylammonium iodide. The experiments were performed with an enzyme preparation obtained from electroplax of Electrophorus electricus. Inhibition of the enzyme by a specific organic phosphate inhibitor abolished both the esterase and the amidase activity of the enzyme. The effect of hydrogen ions between pH 5 and pH 10 on the steady-state kinetic parameters, Km and kcat, has been investigated. These parameters show essentially the same dependence on pH as is observed in catalytic hydrolysis of acetylcholine. k-cat is controlled by an ionizing group of the enzyme with an apparent pK of approximately 6.3, and reaches a pH-independent maximum value of 3.6 sec- minus 1 above pH 8. The value for Km of 1 mM at pH 7 and 25 degrees is about five times greater than that for catalytic hydrolysis of the ester at the same pH and temperature. Preliminary electrophysiological experiments indicate that the amide analog binds to the receptor less well, by several orders of magnitude, than acetylcholine does.