Initially, the specific aim of transplantation studies was to investig
ate the regenerative capabilities of the mammalian nervous system. Fro
m this underlying impetus, a myriad of knowledge, spanning from molecu
lar biology to neurobiology, has enhanced our understanding of regener
ation and the applicability of fetal tissue transplantation in treatin
g various neurodegenerative diseases. Current evidence suggests that t
ransplantation of fetal neural tissue ameliorates the neurobiological
and behavioral changes observed in animal models of central nervous sy
stem (CNS) disorders. In light of numerous basic science studies, clin
ical trials have begun to evaluate the potential of neural transplanta
tion in treating human diseases. Indeed, modest progress has been repo
rted in the treatment of Parkinson's disease. However, whereas fetal t
issue transplantation has reached considerable success, it has also be
en observed to produce either no beneficial effects, magnify existing
behavioral abnormalities, or even produce a unique constellation of de
ficits. Thus, while the prospects are promising, further investigation
s aimed at improving and refining existing transplantation paradigms a
re warranted before neural transplantation techniques can be of widesp
read value. This review article attempts to provide an overview of the
neuroanatomical, neurochemical, and behavioral effects produced by tr
ansplanted fetal tissue in several animal models of CNS disorders. We
have attempted to present both positive and adverse effects and to cri
tically analyze the suitability of neural transplantation as a therapy
for the various neurological disorders. In addition, alternative appr
oaches, including the use of encapsulated neural tissue implants and g
enetically engineered cell lines along with their clinical potential,
are discussed when appropriate.