Newts can regenerate functional elbow joints after amputation at the joint level. Previous studies have suggested the potential contribution of cells from residual tendon tissues to joint cartilage regeneration. A serum‐free tissue culture system for tendons was established to explore cell dynamics during joint regeneration. Culturing isolated tendons in this system, stimulated by regeneration‐related factors, such as fibroblast growth factor (FGF) and platelet‐derived growth factor, led to robust cell migration and proliferation. Moreover, cells proliferating in an FGF‐rich environment differentiated into Sox9‐positive chondrocytes upon BMP7 introduction. These findings suggest that FGF‐stimulated cells from tendons may aid in joint cartilage regeneration during functional elbow joint regeneration in newts.