This study investigates the pharmacokinetics and safety profile of Z‐321, (4R)‐3‐(indan‐2‐ylacetyl)‐4‐(1‐pyrrolidinylcarbonyl)‐1,3‐thiazolidine, a novel specific orally active prolyl endopeptidase (PEP) inhibitor. Following a preliminary safety evaluation wherein 2 subjects received 3.75 and 15 mg doses and 2 other subjects received 7.5 and 30 mg doses, 16 subjects were assigned to two groups of 8 subjects each. In each group, 6 subjects were to receive active treatment, and 1 or 2 subjects were to receive placebo treatment. One group received 60 mg under fasted and fed conditions. A separate group of 8 subjects received 60 mg of Z‐321 or a placebo in a bid regimen for 6 days and the morning dose on day 7. The concentrations of Z‐321 and its main metabolites—R‐ and S‐sulfoxide; RR‐, SS‐, and RS‐indanol; and indanolsulfoxides in plasma and urine—were determined by the HPLC method. In the multiple‐dose study, the cholinesterase activity was gradually increased and reached above the normal range on day 8 in 3 of 6 subjects given Z‐321 and gradually returned to the normal range after completion of dosing. The elevation of plasma cholinesterase activity was considered to be an action of Z‐321, but this remains to be verified. In a single‐dose study at a dose of 30 mg, headache and vomiting were observed in 1 of 6 subjects. In the multiple‐dose study, slight skin itching and eczema in 3 and 2 of 6 subjects, respectively, and headache in 2 of 6 subjects were observed, but all symptoms were not severe. There were no other abnormal findings in objective signs and laboratory findings, including blood pressure, heart rate, electrocardiogram, body temperature, hematology, blood chemistry, and urinalysis. The Cmax of Z‐321 at 30, 60, and 120 mg in the fasting state were 63.7 ± 23.9, 102.0 ± 43.1, and 543.3 ± 437.0 ng/ml (mean ± SD), respectively, at 0.9 hours after administration, and the t1/2 was about 1.8 hours. There were no dramatic changes in the pharmacokinetics of Z‐321 in the presence of food. In the multiple‐dose study, there was no drug accumulation trend in plasma. These results indicate that Z‐321 has acceptable pharmacodynamic and pharmacokinetics profiles for clinical use without any serious adverse events, as verified in healthy young male volunteers.