Intestines of fifty-six albino rats of the Holtzman strain were removed and perfused with Krebs bicarbonate buffered solutions containing caffeine. After one hour of absorbtion, caffeine was extracted from the serosal fluids in chloroform and concentrations were determined spectrophotometrically. It was found that all portions of the small intestine transported caffeine against a concentration gradient. This transport mechanism demonstrated saturation kinetics and was inhibited by ouabain. It was concluded that the movement of caffeine from the mucosa to the serosa of the small intestine cannot be the result of simple diffusion. Possible mechanisms by which the absorption of caffeine takes place are discussed.