Caffeic acid phenethyl ester (CAPE), is one of the most extensively investigated active components of propolis and it is considered responsible for most of its beneficial effects. Among the others, CAPE exerts protection towards many neurological disorders. This review summarizes the protective effects of CAPE towards oxidative stress, inflammation, apoptosis, neurotoxic substances, neurodegenerative diseases, brain tumors and neuronal injuries as well. A paragrah on derivatives of CAPE is also included.