Animals must regulate their sensory responsiveness appropriately with respect to their internal and external environments, which is accomplished in part via centrifugal modulatory pathways. In the olfactory sensory system, responsiveness is regulated by neuromodulators released from centrifugal fibers into the olfactory epithelium and bulb. Among the modulators known to modulate neural activity of the olfactory system, one of the best understood is gonadotropin-releasing hormone (GnRH). This is because GnRH derives mainly from the terminal nerve (TN), and the TN-GnRH system has been suggested to function as a neuromodulator in wide areas of the brain, including the olfactory bulb. In the present article we examine the modulatory roles of the TN and GnRH in the olfactory epithelium and bulb as a model for understanding the ways in which olfactory responses can be tuned to the internal and external environments.