Improved methods and compositions are disclosed for treating dry eye by administering intranasally a therapeutically effective amount of a capsaicinoid compound embedded in multiple layers of solid lamellar crystals of monoglycerides to patients with deficient tear production. The lipophilic capsaicinoid drug is embedded in multiple layers of solid lamellar crystals of monoglycerides, and these crystals are incorporated into pharmaceutically acceptable vehicles comprised of solutions, suspensions, foams, creams, ointments, and gels. The resulting formulations of the capsaicinoid are more stable, less irritating to skin and mucous membranes, and provide increased and more controlled release of the capsaicinoid compound.
