Scope To understand the mechanism by which green tea lowers the risk of dementia, focus was placed on the metabolites of epigallocatechin gallate (EGCG), the most abundant catechin in green tea. Much of orally ingested EGCG is hydrolyzed to epigallocatechin (EGC) and gallic acid. In rats, EGC is then metabolized mainly to 5‐(3′,5′‐dihydroxyphenyl)‐γ‐valerolactone (EGC‐M5) and its conjugated forms, which are distributed to various tissues. Therefore, we examined the permeability of these metabolites into the blood–brain barrier (BBB) and nerve cell proliferation/differentiation in vitro. Methods and Results The permeability of EGC‐M5, glucuronide, and the sulfate of EGC‐M5, pyrogallol, as well as its glucuronide into the BBB were examined using a BBB model kit. Each brain‐ and blood‐side sample was subjected to liquid chromatography tandem‐mass spectrometry analysis. BBB permeability (%, in 0.5 h) was 1.9–3.7%. In human neuroblastoma SH‐SY5Y cells, neurite length was significantly prolonged by EGC‐M5, and the number of neurites was increased significantly by all metabolites examined. Conclusion The permeability of EGC‐M5 and its conjugated forms into the BBB suggests that they reached the brain parenchyma. In addition, the ability of EGC‐M5 to affect nerve cell proliferation and neuritogenesis suggests that EGC‐M5 may promote neurogenesis in the brain. To understand the mechanism by which green tea lowers the risk of dementia, metabolites of epigallocatechin gallate (EGCG) are focused on. The in vitro blood–brain barrier permeability of 5‐(3′,5′‐dihydroxyphenyl)‐γ‐valerolactone (EGC‐M5) is 3.7% in 0.5 h. The neuritogenesis of SH‐SY5Y cells is enhanced by EGC‐M5. The metabolite of EGCG, EGC‐M5, may promote neurogenesis in the brain.