Abstract: Objective To study whether peripheral nerve Schwann cells can be derived from neural stem cells obtained from neonatal rat spinal cord under certain condition in vitro. Methods Cells of neonatal rat spinal cord were isolated and maintained in conditioned medium that was supplemented with B27(final concentration of 1%),recombinant hunman basic-fibroblast growth factor (bFGF)and epidermal growth factor(EGF,final concentration of 20 μg/L)to induce the neural stem cells.Schwann cells were induced subsequently by compound induce factors(5 mL forskolin+10 ng/mL basic-FGF+5 ng/mL PDGF-AA+10%FBS).Immunohistochemical staining(antibody:p75,S-100 and GFAP) was performed to indentify the induction of Schwann cells. Results Cells isolated from neonatal rat spinal cord showed positive expression of nestin;neural stem cells induced from these cells can subsequently differentiate into morphologically Schwann cell-like cells in the supplements of compound factors.Positive expressions of Schwann cells markers(GFAP,S-100 and P75)were detected after immunofluorescence cytochemical staining of these cells.Conclusion Neural stem cells obtained from neonatal rat spinal cord can be differentiated into Schwana cells under the certain conditioned invitro culture.