Long-term cyclophosphamide (CY) treatment was used in male Wistar rats submitted to ethidium bromide (EB) demyelinating model to investigate ultrastructurally the drug effects on remyelination and on central nervous system (CNS) tissue repair. Demyelination was induced by a single 10 microl intracisternal injection of 0.1% EB solution and the rats anaesthetized and perfused through the heart from the 15th to the 31st day after injection. Brainstem sections were collected and processed for light and transmission electron microscopy studies. At different times after EB injection, it was observed the presence of macrophages in phagocytic activity and non-degraded myelin debris in the extracellular space, as well as remyelinated and demyelinated axons. Remyelination was carried out by both oligodendrocytes and Schwann cells, the latter notably around blood vessels and in areas of expanded extracellular space. It was also noted groups of infiltrating meningeal cells and astrocytes showing hypertrophic processes with numerous bundles of glial filaments. The rats treated with CY showed greater amounts of myelin-derived membranes than non-treated rats, suggesting a delay in the macrophage activity of removing myelin debris. Additionally oligodendrocyte remyelinating activity showed an incipient and restricted pattern, with clear predominance of naked axons. Rare lymphocytes were also found, as well as decreased neovascularization.