Levodopa provides effective symptomatic treatment for Parkinson's disease. However, nonmotor symptoms are often insufficiently relieved, and its long-term use is complicated by motor fluctuations and dyskinesia. To clarify mechanisms of levodopa-induced dyskinesia and pharmacological interventions aimed at reducing dyskinetic symptoms, we have here characterized the neurophysiological activity patterns in sensorimotor and cognitive-limbic circuits in dyskinetic rats, comparing the effects of amantadine, pimavanserin, and the novel prospective antidyskinetic and antipsychotic treatment mesdopetam. Parallel recordings of local field potentials from 11 cortical and subcortical regions revealed suppression of narrowband gamma oscillations (NBGs) in sensorimotor structures by amantadine and mesdopetam in conjunction with alleviation of dyskinetic signs. Concomitant gamma oscillations in cognitive-limbic circuits were not directly linked to dyskinesia and were not affected by antidyskinetic treatments to the same extent, although treatment-induced reductions in functional coupling were observed in both sensorimotor and cognitive-limbic circuits, in parallel. In a broad frequency spectrum (1–200 Hz), mesdopetam treatment displayed greater similarities to pimavanserin than to amantadine. These findings point to the reduction of NBGs as a valuable biomarker for the characterization of antidyskinetic treatment effects and provide systems-level mechanistic insights into the antidyskinetic efficacy of mesdopetam, with potential additional benefits for the treatment of Parkinson's-related psychosis.