Munc18 functions by interacting with syntaxin-1 to regulate the formation of the SNARE complex, which is essential for exocytosis. Munc18 binds to a closed conformation of syntaxin, preventing premature assembly of the SNARE complex. Upon receiving the appropriate signals, Munc18 undergoes conformational changes that allow syntaxin to participate in the formation of the SNARE complex, facilitating vesicle fusion and the release of neurotransmitters or hormones.