Olfaction plays a dominant role in modulating behaviour in most vertebrate species and the olfactory bulb is considered a model system for characterizing principles of neural computation. Nevertheless, although the physiology and neurochemistry of the olfactory circuits have been widely studied, the neurotransmitter released by olfactory receptor neurones remains unknown. We now describe the ultrastructural localization of the dipeptide carnosine and the excitatory amino acid glutamate in the glomerular layer of the mouse olfactory bulb. We demonstrate that both carnosine-like and glutamate-like immunoreactivities are selectively co-localized in the olfactory neurone boutons. These observations, taken with the recent findings of glutamate-receptor subunit expression in rodent olfactory bulb, argue compellingly for a role of glutamate in olfactory neurotransmission and suggest a modulatory effect of carnosine.