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Abstract This study was undertaken to identify and characterize the first ligands capable of selectively identifying nicotinic acetylcholine receptors containing α7 and β2 subunits (α7β2‐nAChR subtype). Basal forebrain cholinergic neurons express α7β2‐nAChR. Here, they appear to mediate neuronal dysfunction induced by the elevated levels of oligomeric amyloid‐β associated with early Alzheimer's disease. Additional work indicates that α7β2‐nAChR are expressed across several further critically important cholinergic and GABAergic neuronal circuits within the central nervous system. Further studies, however, are significantly hindered by the inability of currently available ligands to distinguish heteromeric α7β2‐nAChR from the closely related and more widespread homomeric α7‐only‐nAChR subtype. Functional screening using two‐electrode voltage‐clamp electrophysiology identified a family of α7β2‐nAChR‐selective analogs of α‐conotoxin PnIC (α‐CtxPnIC). A combined electrophysiology, functional kinetics, site‐directed mutagenesis, and molecular dynamics approach was used to further characterize the α7β2‐nAChR selectivity and site of action of these α‐CtxPnIC analogs. We determined that α7β2‐nAChR selectivity of α‐CtxPnIC analogs arises from interactions at a site distinct from the orthosteric agonist‐binding site shared between α7β2‐ and α7‐only‐nAChR. As numerous previously identified α‐Ctx ligands are competitive antagonists of orthosteric agonist‐binding sites, this study profoundly expands the scope of use of α‐Ctx ligands (which have already provided important nAChR research and translational breakthroughs). More immediately, analogs of α‐CtxPnIC promise to enable, for the first time, both comprehensive mapping of the distribution of α7β2‐nAChR and detailed investigations of their physiological roles.