Membrane/lipid rafts (MLR) in neuronal plasma membrane establish cell polarity by clustering pro-growth receptors and tethering cytoskeletal machinery necessary for neuronal sprouting. MLR are essential for initiating growth in response to extracellular cues. Here we show that neuron-targeted overexpression of a MLR scaffold protein, caveolin-1 (SynCav1), increases MLR, MLR-localization of Cav-1 and increases neurite growth in the adult mouse hippocampus in vivo. SynCav1 overexpression in 6-month-old mice enhances dendritic arborization within the apical and basal dendrites of hippocampal neurons with corresponding increases in hippocampal theta burst induced long-term potentiation (LTP), indicating improved structural and functional plasticity of hippocampal neurons. SynCav1 overexpression in 10-month-old mice increased dendritic arborization within the apical dendrites of hippocampal neurons with corresponding enhancement in contextual fear memory demonstrating improved hippocampal function at 20 months of age. Our study demonstrates that neuron-targeted overexpression of caveolin-1 in the adult hippocampus enhances structural and functional neuroplasticity in vivo and improves learning and memory in aged mice.