High strength magnetic fields were used to align collagen gel formed into 4 mm diameter rods during the self assembly of type I collagen monomers into fibrils. We developed an in vitro assay to study neurite elongation into magnetically aligned collagen gel rods (CGRs) from rat dorsal root ganglia (DRG) placed onto one end of the rods. Enhancement of invasion due to growth cone contact guidance in these in vitro experiments has been manifested as improved regeneration in an in vivo study in mice. Preliminary experimental results using pre-seeded Schwann cells and collagen gels with derivatized laminin peptides to stimulate as well as direct neurite elongation in our CGR-DRG invasion assay are presented. These results may translate into an improved method of entubulation repair of transected peripheral nerves by directing as well as stimulating neurite growth through a tube filled with magnetically aligned collagen gel.