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. After several years since the collapse of the Soviet Union, this region is still important for Russians from the aspects of political strategy, and regional interests. On the other hand, given the power vacuum created in the region following the dissolution of the Soviet Union, the United States attempts to extend its influence in the region through economic investment, particularly in the field of energy and boost military cooperation with the regional countries. The US also competes with the Russian Federation as the region's traditional power. 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.