The aim of this study was to evaluate the effect of Cordyceps militaris (CM) on neurite outgrowth in Neuro2A mouse neuroblastoma cells and scopolamineinduced learning and memory deficits in rats. Pretreatment with CM (5-20 ${mu}g/mL$) for 1 h was sufficient to stimulate primary neurite sprouting and extension of Neuro2A cells after 24 h cultivation in a dose-dependent manner. The CM also increased choline acetyltransferase expression in differentiated Neuro2A cells. Administration of CM significantly reversed the scopolamine-induced deficit in memory, and it alleviated decrease in cholinergic immunoreactivity in the hippocampus. Our results demonstrated that in vitro neuritogenesis of Neuro2A cell lines by CM constitutes a potential clue that could help to explain in vivo improvement of memory functions using the behavioral tasks. These results suggest that CM is strongly effective in protecting against memory-related neuronal degeneration in the brain and retarding the progression of memory deficits associated with various neurodegenerative diseases.