Nerve elongation resulting from leg-lengthening surgery can be injurious. We investigated peripheral nerve injury and recovery after gradual elongation of the rat sciatic nerve by progressive stretching. Indirect nerve elongation was produced by leg lengthening by 15 mm, at a rate of 3 mm/day (group I) or 5 mm/day (group II). The elongated length was then maintained. At 0 weeks, representing the 7th day after starting leg lengthening, and at weeks 2, 4, and 6, transverse semithin sections of sciatic nerve were examined. At the same time a teased fiber study was performed. As a result of nerve elongation axon diameter was decreased, although it later recovered. Axon diameter recovered more slowly in group II than I. Myelin thickness did not change compared with controls. In the teased fiber study, internodal length was increased by about 10% after nerve elongation in each group. Almost all nerve fibers showed demyelination at 0 weeks; myelination recovered with time, more slowly in group II than I. More obvious demyelination, axonal degeneration, and remyelination were observed in group II. We conclude that mild demyelination was repaired by elongation of internodes, while more severe demyelination was repaired by intercalation of segments.