The outcomes of compressed spinal cord injury (CSCI) necessitate radical treatment. The therapeutic potential of neuroectodermal stem cells (NESCs) in a rat model of CSCI in acute and subacute stages was assessed. White Wistar rat were divided into control, sham-operated, CSCI untreated model, CSCI grafted with NESCs at 1 day after CSCI, and at 7 days after CSCI. Primary NESC cultures were prepared from brains of embryonic day 10 (E10) mice embryos. NESCs were transplanted at the site of injury using a Hamilton syringe. Locomotor functional assessment, routine histopathology, immunostaining for (GFAP), and ultrastructure techniques for evaluating the CSI were conducted. In CSCI, areas of hemorrhage, cavitation, reactive astrocytosis, upregulated GFAP expression of immunostained areas, degeneration of the axoplasm and demyelination were observed. One day after grafting with NESCs, a decrease in astrocyte reaction and pathological features, quantitative and qualitative enhancement of remyelination and improved locomotor activity were observed. Treatment with NESCs at 7 days after CSCI did not mitigatethe reactive astrocytosis and glial scar formation that hindered the ability of the NESCs to enhance remyelination of axons. In conclusion, the microenvironment and time of NESCs transplantation affect activity of astrocytes and remyelination of axons.