Inhalational anesthetic agents are known to alter protein function, but the nature of the interactions underlying these effects remains poorly understood. We have used differential scanning calorimetry to study the effects of the anesthetic agent halothane on the thermally induced unfolding transition of bovine serum albumin. We find that halothane (0.6–10 mM) stabilizes the folded state of this protein, increasing its transition midpoint temperature from 62 to 71°C. Binding of halothane to the native state of serum albumin thus outweighs any non-specific interactions between the thermally unfolded state of serum albumin and halothane in this concentration range. Based on the average enthalpy change Δ H for unfolding of 170 kcal/mol, the increase from 62 to 71°C corresponds to an additional Gibbs energy of stabilization (ΔΔ G) due to halothane of more than 4 kcal/mol. Analysis of the dependence of ΔΔ G on halothane concentration shows that thermal unfolding of a bovine serum albumin molecule is linked to the dissociation of about one halothane molecule at lower halothane concentrations and about six at higher halothane concentrations. Serum albumin is the first protein that has been shown to be stabilized by an inhalational anesthetic.