Geniposide and its related iridoid compounds have been used in traditional herbal medicine for the treatment of Jaundice hepatic diseases and various inflammatorys. For the purpose to increase trandsdermal absorption, the hydrolyzed products of Gardeniae Furcuts were identified and assayed of active ingredients and investigated trandsdermal absorption and anti-inflammatory effects. Geniposide was hydrolyzed to genipin by β-glucosidase and it was suggested that genipin was more suitableform than geniposide for transdermal absorption by its lipophilic property. Using Franz type diffusion cell and the skin of hairless mouse, the permeation rate of hydrolyzed products and their emulsion preparation were determined. Genipin have more increased absorption ratio through the skin hairless mouse than geniposide. Also, the emulsion of hydrolyzed products of extracts showed higher permeability than that of nonhydrolyzed preparations. After 9 hours 280.85 ㎍/㎠ of genipin was absorbed and 193.52 ㎍/㎠ in case of geniposide. The Js of geniposide and genipin were 26.27±4.11 ㎍/㎠/hr and 40.35±5.04 ㎍/㎠/hr respectively. After carrageenan injection, the swelling was increased rapidly to 24 hr and maintained as a plateau. But emulsion group were reached about 2.5 mL and the swelling decreased successively from 24 hr to 72 hr. The anti-inflammation effects of extracts and hydrolyzed products emulsion were increased with significant difference with control group after 24 hr, 48 hr and 72 hr. In carrageenan induced edema, inhibition of swelling was increased in case of hydrolyzed product emulsion compare with nonhydrolyzed group at 24 hr, 48 hr and 72 hr after swelling. In histological study, the anti-inflammatory effects of hydrolyzed products were remarkable at 48 hr and 72 hr compare with nonhydrolyzed. Hydrolyzed products of Gardeniae Frucuts extract containing genipin would be a suitable preparation to increase the transdermal absorption and anti-inflammatory effects.