Identification of arachidonylethanolamide (anandamide) as an endogenous cannabinoid is one of the most important developments in cannabinoid research in recent years. In a relatively short period of time thereafter, pharmacological and biochemical studies have confirmed initial speculations that anandamide is a neuromodulator and significantly advanced our understanding of cannabinoid biochemistry. Moreover, the discovery of anandamide has led to the identification of two heretofore unknown proteins associated with cannabinoid physiology: 1) Anandamide Amidohydrolase (AAH), an enzyme responsible for the hydrolytic breakdown of anandamide and 2) the Anandamide Transporter (ANT), a carrier protein involved in the transport of anandamide across the cell membrane. Evidence obtained so far suggests that these two proteins, in combination, are responsible for the termination of the biological actions of anandamide. Also, the discovery of anandamide has revealed a novel class of more selective cannabimimetic agents possessing a somewhat different pharmacological profile of potential therapeutic value. A number of such analogs have now been reported many of which possess markedly improved cannabinoid receptor affinity and metabolic stability compared to those of the parent ligand. Generally, anandamide and all known analogs exhibit significant selectivity for the CB1 receptor and modest to very low affinity for CB2. For this reason, this group of compounds can be considered as CB1 ligands. The purpose of this review is to summarize the structure-activity relationships (SAR) of anandamide for the CB1 cannabinoid receptor and to define the structural requirements for the substrates and the inhibitors of anandamide amidohydrolase and the anandamide transporter.