This study was aimed to investigate the feasibility of nasal delivery of caffeine for the elimination of sleepiness. The effects of various vehicles, solubilizers, and enhancers on the permeation of caffeine through rabbit nasal mucosa was observed. The permeation study was carried out using a Franz-type permeation system at $37^{circ}C$, and the amount of caffeine permeated though the rabbit nasal mucosa was determined by a validated HPLC. The apparent solubility and phys iochemical stability of caffeine in various nasal formulations were was determined. The effect of hydrotropes and modified cyclodextrins on the solubility of caffeine in water was determined by equilibrium solubility method. The solubility of caffeine in water was 29 mg/mL at $30^{circ}C$. The addition of sodium benzoate and nicotinamide at 10% improved the solubility of caffeine (115 and 132 mg/mL, respectively) in aqueous solution. The flux of caffeine though the nasal mucosa from aqueous solution was $2.1{pm}0.26;mg/cm^2/hr$. The addition of sodium benzoate reduced its permeation $(1.4{pm}0.01;mg/cm^2/hr)$, but sodium benzoate with 5% $2HP{eta}CD$ and 0.03% monoterpenes increased its permeation $(2.4{pm}0.04;mg/cm^2/hr)$ markedly. The addition of nicotinamide also increased also increased its permeation $(2.5{pm}0.36;mg/cm^2/hr)$. markedly. As the concentration of caffeine in nasal formulation increased, the permeation flux increased linearly. Caffeine was stable physicochemically and enzymatically in the nasal mucosa extract at $37^{circ}C$. These results suggest that caffeine can be efficiently delivered nasally and the development of nasal formulation will be feasible.