Anandamide is a naturally occurring compound in the body, classified as an endocannabinoid. It plays a crucial role in regulating various physiological processes, including mood, appetite, and pain sensation. Anandamide binds to cannabinoid receptors, similar to how compounds in cannabis, like THC, interact with these receptors. Discovered in the 1990s, anandamide is derived from fatty acids and is produced on-demand in the brain. Its name comes from the Sanskrit word "ananda," meaning bliss or joy, reflecting its role in promoting feelings of well-being. Research continues to explore its potential therapeutic applications in conditions like anxiety and depression.