Much excitement has been generated by recent work showing that a variety of myelin-forming cell types can elicit remyelination and facilitate axonal regeneration in animal models of demyelination and axonal transection. These cells include peripheral-myelin-forming cells, such as Schwann cells and olfactory ensheathing cells. In addition, progenitor cells derived from the subventricular zone of the brain and from bone marrow (BM) can form myelin when transplanted into demyelinated lesions in rodents. Here, we discuss recent findings that examine the remyelination potential of transplantation of peripheral-myelin-forming cells and progenitor cells derived from brain and bone marrow. Better understanding of the repair potential of these cells in animal models may offer exciting opportunities to develop cells that may be used in future clinical studies.