Abstract. In this paper, a characterisation is given of finite s-arc transitive Cayley graphs with s ≥ 2. In particular, it is shown that, for any given integer k with k ≥ 3 and k = 7, there exists a finite set (maybe empty) of s-transitive Cayley graphs with s ∈ {3, 4, 5, 7} such that all s-transitive Cayley graphs of valency k are their normal covers. This indicates that s-arc transitive Cayley graphs with s ≥ 3 are very rare. However, it is proved that there exist 4-arc transitive Cayley graphs for each admissible valency (a prime power plus one). It is then shown that the existence of a flag-transitive non-Desarguesian projective plane is equivalent to the existence of a very special arc transitive normal Cayley graph of a dihedral group.