1. Some progesterone is synthesized within both the central and the pe
ripheral nervous systems, where it regulates neurotransmission and imp
ortant glial functions, such as the formation of myelin, Progesterone
can thus be designated a ''neurosteroid.'' 2. Steroids act not only on
the brain, but also on peripheral nerves, which offer many advantages
to study the biological significance of locally produced neurosteroid
s: their remarkable plasticity and relatively simple structure. 3. By
using the regenerating mouse sciatic nerve as a model, we have shown t
hat progesterone synthesized by rat Schwann cells promotes the formati
on of new myelin sheaths, Progesterone also increases the number of my
elinated axons when added at a low concentration to cocultures of Schw
ann cells and sensory neurons. 4. These findings show a function on my
elination for locally produced progesterone and suggest a new pharmaco
logical approach of myelin repair.