Current putative regeneration oriented studies express possible role of stem cell based implantation strategy in the restoration of fundamental perception of hearing. The present work utilizes arat auditory nerve (AN) directed transplantation of human neural progenitor cells (HNPCs) as acell replacement therapy for impaired auditory function. Groups of β-bungarotoxin induced auditory function compromised female rats were used to transplant HNPCs in the nerve trunk. In thetreatment groups, brain derived neurotrophic factor (BDNF), peptide amphiphile nanofiber bioactive gel (Bgel) and Chondroitinase ABC (ChABC), a digestive enzyme that cleaves the core of chondroitin sulphate proteoglycans, were added along with HNPCs while the control groups were withPA inert gel (Igel) and devoid of ChABC. Six weeks post transplantation survival, migration, and differentiation of HNPCs were studied and compared. The groups treated with BDNF and Bgelshowed improved survival and differentiation of transplanted HNPCs while the ChABC treatedgroup showed significant migration of HNPCs along the AN and elongation of neuronal fibers alongthe nerve towards the cochlear nucleus (CN) which was characterized by immunocytochemicalmarkers for human Nuclei (HuN), human mitochondria (HuM) and neuronal β-tubulin (Tuj1).These findings show that addition of BDNF and ChABC consisted Bgel environment facilitatedHNPC survival, migration and differentiation along the transplanted rat AN towards the CN. Thistransplantation strategy provides unique experimental validation for futuristic role of cell basedbiomaterial consisted neurotrophic factor application in clinically transferable treatment of sensorineural hearing loss (SNHL) along with cochlear implants (CI).