A 17-year-old from Cronk-y-Voddy has admitted possessing £20,583-worth of cannabis with intent to supply.
Neil Clarke told police he had been told by a person he would not name, to take the drugs to another person he would not name.
Magistrates declined jurisdiction and will be sentenced at the Court of General Gaol Delivery.
Prosecuting advocate Rachael Braidwood told the court how police had seized 686 grams of cannabis on May 19.
The teenager also admitted resisting arrest after a charge of escaping lawful custody was withdrawn.
Defence advocate Stephen Wood entered a basis of plea for his client in which Clarke said he was only going to supply the drug to a person he was told to take it to rather than commercially supplying it.
Mr Wood asked for a psychiatric report to be prepared before sentencing as well as a probation report.
Clarke will appear at the higher court on September 3.
Bail continues with conditions to live at his home address, not contact witnesses, to contact probation, and not to leave the island without court consent.