The invention provides a method of screening a candidate drug, a compound library or a biological extract to identify activators or inhibitors of G-protein-coupled receptors or G-protein-coupled pathways, comprising: (A) using a fluorescent protein fragment complementation assay to construct an assay for one or more steps in a G-protein-coupled pathway; (B) testing the effects of the candidate drugs, compound library, or biological extract on the receptor or pathway of interest; and (C) using the results of the screening to identify specific agents that activate or inhibit the receptor or pathway of interest. The invention also provides a method for identifying a drug lead that modulates the activity of a G-protein-coupled pathway using a fluorescent protein fragment complementation assay. The method of the invention is used to identify agonists, antagonists, activators or inhibitors of G-protein coupled receptors or G-protein-coupled pathways.