olfactory. pertaining to smell. olfactory nerve the first cranial nerve; it is purely sensory and is concerned with the sense of smell. The nerve cell bodies are situated in the olfactory area of the mucous membrane of the nose.lfactory system. includes the olfactory part of the nasal mucosa, the olfactory nerves and the olfactory bulbs of the cerebrum. olfactory tract. a band of white nerve fibers visible on the ventral surface of the brain running caudally from the olfactory bulbs.