The chemical composition and microstructure of a biocompatible material prepared from chitosan were evaluated using FTIR and SEM techniques. Its mechanical and physical properties were also tested. The materials nerve cell affinity and peripheral nerve repair feasibility were also evaluated. In vitro cytotoxicity tests indicated that both cerebral cortex cells and endothelial cells (ECs) can attach to the surface and grow well. These results indicate that chitosan has the necessary properties for an artificial nerve conduit material and may be a promising candidate for the design of a bioactive, biodegradable nerve conduit.