[5] Owing to the chemical's numerous legitimate uses, the sale and possession of nitrous oxide is legal in many countries, although some have criminalised supplying it for recreational purposes.

[6] Since nitrous oxide can cause dizziness, dissociation, and temporary loss of motor control, it is unsafe to inhale while standing up.

While the pure gas is not acutely toxic, it inactivates vitamin B12,[8] with continued use causing neurological damage due to peripheral and central demyelination.

[12] In 2018, an Ohio University freshman died of asphyxiation as a result of nitrous oxide ingestion from whipped-cream chargers, allegedly as part of a hazing ritual.

[13] In 2020, a fifteen-year-old Irish boy died after ingesting nitrous oxide,[14] leading to Ireland's Health Service Executive classing it as a dangerous drug.

[15] Inhalation of nitrous oxide for recreational use, with the purpose of causing euphoria or slight hallucinations, began as a phenomenon for the British upper class in 1799, known as "laughing gas parties".

[16] During the 19th century, William James and many contemporaries found that inhalation of nitrous oxide resulted in a powerful spiritual and mystical experience for the user.

When equipment became more widely available for dentistry and hospitals, most countries also restricted the legal access to buy pure nitrous oxide gas cylinders to those sectors.

[20][21] It was not uncommon [in the interviews] to hear from individuals who had been to parties where a professional (doctor, nurse, scientist, inhalation therapist, researcher) had provided nitrous oxide.

The balloons used for inhaling the gas are called funky balls[26] and are widely available in bars, pubs, and online for home delivery.

[27][28] In the United Kingdom, as of 2014[update], nitrous oxide is estimated to be used by almost half a million young people at nightspots, festivals and parties.

[29] Recreational users generally use 8 gram (¼ oz) containers of nitrous oxide "whippets", which they use to fill balloons or whipped cream dispensers.

[30] This is necessary because nitrous oxide is very cold when it undergoes adiabatic decompression on exit from a canister; inhalation directly from a tank is dangerous and can cause frostbite of the larynx and bronchi.

[31] Recently, as of 2022 and later, large canisters of nitrous oxide containing 600 grams or more of net content have appeared in vape shops and other retailers.

Health professionals have expressed concern as the large size may make it easier for neurotoxic effects and dependency to develop in users.

[32][33] Additionally, in 2024, flavored nitrous oxide canisters produced by Galaxy Gas and other brands have become popular, and also criticized for seemingly being marketed towards children.

[42] In 2021, Thailand banned recreational nitrous oxide balloons after discovering they could deprive users of oxygen, posing serious health risks.

[45] On 5 September 2023, it was announced by the British government that nitrous oxide will be categorised as a class C drug by the end of 2023, in an effort to crack down on anti-social behaviour.

[46] Slang terms used for the canisters in the United Kingdom include balloons, nos, whippits, laughing gas, hippie crack, chargers and noz.

Prosecution is possible under its "misbranding" clauses, prohibiting the sale or distribution of nitrous oxide for the purpose of human consumption (the recreational drug use market).