Although nicotine activation of dopamine release is implicated in addiction, it also desensitizes nicotinic acetylcholine receptors (nAChRs), leading to a prolonged depression of evoked dopamine release. Here we show that nicotine's effects depend on the firing pattern of dopamine neurons, so that while desensitization of nAChRs indeed curbs dopamine released by stimuli emulating tonic firing, it allows a rapid rise in dopamine from stimuli emulating phasic firing patterns associated with incentive/salience paradigms. Nicotine may thus enhance the contrast of dopamine signals associated with behavioral cues.