Neonatal estradiol (EB) increases extrasynaptic α4/δ GABAARs in adult hippocampus. Neonatal EB decreases synaptic α1/α4/γ2 GABAAR subunits in adult rat hippocampus. Neonatal EB alters GABAergic tonic and phasic currents in adult rat hippocampus. These changes in GABAARs are independent of ambient allopregnanolone levels. Neonatal EB improves spatial learning and memory retrieval in adult rats.