Objective To study the repairing effects of nerve growth granule (NGG) on rat common peroneal nerve transection injury. Methods After 50 Sprague-Dawley rats were subjected to nerve suture after transaction, they were randomly divided into 5 groups for daily intragastric administration of drugs: NGG high-dose (5.2g/kg), medium-dose (2.6g/kg), low-dose (1.3g/kg) groups, mecobalamin group (positive control) at 625 μg/kg, control group (control group control). The drug administration lasted for 4 weeks. Footprint test was performed 2-, 3- and 4- weeks after surgery to evaluate toe spread function (TSF). Electrophysiology was performed 4 weeks after operation to determine the compound muscle action potential (CMAP) and nerve action potential (NAP). The number of regenerated myelinated nerve fibers, thickness of myelin sheath and cross sectional area of tibial muscle were measured by histomorphology. Results TSF, amplitude and recovery rate of CMAP and NAP, the number of regenerated myelinated nerve fibers, thickness of myelin sheath and section area of tibial muscle were all increased significantly in a dose-dependent manner compared with the control group. Conclusion NGG contributes to axon growth and myelination, and thus promotes peripheral nerve regeneration in rats with functional recovery.