Cyclic nucleotide-gated (CNG) channels represent one of the three known cellular receptor classes for cGMP. Activation of CNG channels by binding of cyclic nucleotides to a site in the C-terminus results in opening of the channel pore, entry of Ca2+ into the cell and subsequent induction of Ca2+-dependent processes. In this review we will summarize new data on the complex molecular structure and the activation mechanism of CNG channels. In addition, we will discuss the role of CNG channels as mediators of NO:cGMP-dependent cellular processes.