Alzheimer's disease (AD) is the most common cause of senile dementia and one of the greatest medical, social, and economic challenges. According to a dominant theory, amyloid-beta (A beta) peptide is a key AD pathogenic factor. A beta-soluble species interfere with synaptic functions, aggregate gradually, form plaques, and trigger neurodegeneration. The AD-associated pathology affects numerous systems, though the substantial loss of cholinergic neurons and alpha 7 nicotinic receptors (alpha 7AChR) is critical for the gradual cognitive decline. A beta binds to alpha 7AChR under various experimental settings; nevertheless, the functional significance of this interaction is ambiguous. Whereas the capability of low A beta concentrations to activate alpha 7AChR is functionally beneficial, extensive brain exposure to high A beta concentrations diminishes alpha 7AChR activity, contributes to the cholinergic deficits that characterize AD. A beta and snake alpha-neurotoxins competitively bind to alpha 7AChR. Accordingly, we designed a chemically modified alpha-cobratoxin (mToxin) to inhibit the interaction between A beta and alpha 7AChR. Subsequently, we examined mToxin in a set of original in silico, in vitro, ex vivo experiments, and in a murine AD model. We report that mToxin reversibly inhibits alpha 7AChR, though it attenuates A beta-induced synaptic transmission abnormalities, and upregulates pathways supporting long-term potentiation and reducing apoptosis. Remarkably, mToxin demonstrates no toxicity in brain slices and mice. Moreover, its chronic intracerebroventricular administration improves memory in AD-model animals. Our results point to unique mToxin neuroprotective properties, which might be tailored for the treatment of AD. Our methodology bridges the gaps in understanding A beta-alpha 7AChR interaction and represents a promising direction for further investigations and clinical development.