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Background: Using grafts in order to facilitate peripheral nerve regeneration, it is important to consider immune system stimulation, flexibility and strain bearing. Success is mainly due to Schwann cells, growth factors and the extracellular matrix. Since endogenous Schwann cells are not sufficient, exogenously cultured cells play an essential role in axonal regeneration, especially in peripheral locations. Methods: Two grafting techniques were compared including venous grafts with and without Schwann cells in rats during a 4-month period of time.Results: Grafts containing Schwann cells showed 8-times greater motion power compared to the control group. Conclusion:It seems Schwann cells play a crucial role in axonal regeneration and repair in the peripheral nervous system.