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While you sleep you can’t smell anything even really bad or potent smells, specially while they are in the dreaming phase of sleep (REM) or deep sleep. You don't wake up by coffee smell ; rather you wake up and then smell the coffee.

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While it's a common belief that potent smells can awaken us from sleep, scientific studies suggest that our sense of smell virtually shuts down when we enter the realm of deep sleep or REM (Rapid Eye Movement) sleep, the phase where most dreaming occurs. Although some smells might impact our sleep patterns or integrate into our dreams in subtle ways, they generally do not awaken us directly.

The reason behind this lies in the way our sensory system functions during different stages of sleep. During wakefulness, odors are detected by olfactory sensory neurons in the nose and are then transmitted to the brain, which registers and potentially reacts to these smells. However, when we transition into deep sleep, our body prioritizes rest and recovery over sensory perception. This reduction in sensory activity includes our sense of smell.

When it comes to the anecdotal experience of waking up to the aroma of coffee, what typically happens is a reversal; rather than the smell of coffee waking us up, we wake up for other physiological or environmental reasons and then notice the smell of coffee. In essence, upon waking, our sensory systems "reboot" and we become aware of smells and other sensory inputs that were present but not perceived during sleep.

This doesn't completely rule out the possibility that under certain circumstances, exceptionally strong or novel odors could trigger a wake response. For instance, in situations involving danger, such as smoke from a fire, other protective mechanisms might override the general decrease in sensory activity to alert a person to the hazard, although this area requires more extensive research to fully understand these exceptions.

Overall, while the sense of smell takes a backseat during our sleeping hours, understanding this aspect of human biology can be crucial for grasping how our bodies rest and recover, and how external factors can influence our sleep environment and quality.