  We present an improved Standard-Model (SM) prediction for the dilepton decay
of the neutral pion. The loop amplitude is determined by the pion transition
form factor for $\pi^0\to\gamma^*\gamma^*$, for which we employ a dispersive
representation that incorporates both space-like and time-like data as well as
short-distance constraints. The resulting SM branching fraction,
$\text{BR}[\pi^0\to e^+e^-]=6.25(3)\times 10^{-8}$ , sharpens constraints on
physics beyond the SM, including pseudoscalar and axial-vector mediators.
