The Caucasus region is located between the Black Sea and the Caspian Sea in south of the Russian Federation, north west of Iran and north east of Turkey. Geographical situation and strategic significance of the South Caucasus, have turned it to one of the most important parts of the world. In an atmosphere of the US -Russia geostrategic competition and possibility of waging a Cold War between these two countries, the new structure of the US-Russia relations, particularly following the events of September 11, casts a shadow over issues of internal foundations of Georgia’s Rose Revolution and the Russia’s war with Georgia. This article seeks to find out reasons behind US-Russia rivalry in the South Caucasus and attempts to disclose the objectives of this competition.