In this study, a chitosan conduit loaded with bone marrow stromal cells (BMSCs) was developed to bridge the gap in the transected spinal cord of adult rats, and the nerve repair outcomes were evaluated by functional and histological techniques at 12 weeks after implantation. As compared to chitosan conduits alone, incorporation of BMSCs within chitosan conduits yielded additional improving effects on nerve regeneration and function restoration. The measurements with the Basso, Beattie and Bresnahan locomotor rating scale or of motor evoked potentials indicated that motor functional recovery was enhanced; retrograde tracing confirmed that the ascending tract was regenerated and the neural pathway was established; and histological analyses revealed that axon growth and remyelination in the regenerated nerve was promoted. The three-dimensional reconstruction showed that the chitosan conduit loaded with BMSCs significantly reduced the spinal cord cavity volume at the injured site. Taken together, the results collectively suggest that implantation with BMSCs-loaded chitosan conduits may become a promising approach to the repair of spinal cord injury.