This study presents the development and initial testing of a novel olfactory-based neurofeedback (NFB) system, utilizing electroencephalographic (EEG) recordings. Distinct from traditional visual or auditory NFB, this approach explores olfactory stimuli as the way to deliver NFB. The developed and tested olfactory-based system offers multiple opportunities because olfaction has strong associations with memory and emotional states and therefore can be a sufficiently strong reinforcing stimulus for both classical and instrumental conditioning. The developed system incorporates an EEG apparatus, an automated olfactory display delivering Sniffin’ Sticks, and a Python application for EEG-to-NFB signal conversion. We conducted a preliminary evaluation with fifteen participants split into the olfactory NFB, auditory NFB, and mock-olfactory NFB groups. The NFB represented the occipital alpha rhythm. We observed an increase in alpha power in the true NFB groups and a fatigue-related decrease in the mock NFB group. These initial results demonstrate the feasibility of olfactory NFB and establish a framework for this approach.