To explore the adhesion and proliferation characteristics of bone marrow mesenchymal cells (MSCs) to chitosan conduit membrane, MSCs were induced by a sequential composition Beta-mercaptoethanol, retinoic acid, forskolin, basic-FGF, PDGF and heregulin. Schwann Cell markers, namely S-100 and GFAP, were used to discriminate the induced MSCs' properties by immunofluorescent staining. These results suggested that MSCs can take on Schwann cell's phenotype in vitro and the induce MSCs were gifted with good biocompatibility to biogradable chitosan conduit membrane. The results provided the possibilities to using the induced MSCs with chitosan conduit membrane in artificial peripherial nerve fields to promote nerve regeneration.