Schwann cells (SCs) are significantly better at promoting neural stem cell (NSCs) proliferation, differentiation and synaptic formation when cocultured with NSCs in vitro, compared with cultured in a single nerve growth factor. The present study transplanted NSCs and SCs into the brain of a rat model of Alzheimer's disease to investigate the effect of cotransplantation. Results show transplantation of both NSCs alone and NSCs + SCs significantly promoted learning and memory functions in Alzheimer's disease rats, decreased glial fibrillary acidic protein and calcium binding protein S100 beta expression, but increased expression of the cholinergic neuron marker choline acetyl transferase mRNA. The effect of NSCs + SCs cotransplantation was, however, more significant. NSCs and SCs cotransplantation significantly reduced the number of astrocytes and increased cholinergic neurons, facilitating the recovery of learning and memory function, compared with NSCs transplantation alone.