The adipose tissue is unique in its ability to expand and regress throughout life. In developed and developing countries, the overall adipose tissue expansion phase outpaces regression, resulting in an ever-expanding obese society. To shed the “extra pound”, a significant number of patients undergo surgeries to remove the unwanted fat. The resulting “medical wastes” are however potential therapeutic treasures for two reasons. One is that the adipose tissue is a rich source of multipotent mesenchymal cells called adipose-derived stem cells (ADSCs) 1,2; and the other is that the adipose extracellular matrix (ECM) can be fabricated into acellular scaffolds for tissue engineering 3–5. In regard to ADSCs, these cells have been shown to differentiate into Schwann cells that formed myelin sheath on axons 6 and have been used to seed nerve conduits for peripheral nerve repair 7–9. In addition, we have shown that ADSCs secrete neurotrophic factors that promote cavernous nerve (CN) regeneration 10,11. In regard to adipose ECM, the fabricated scaffolds have been shown to support adipogenic differentiation of ADSCs 5. In the present study we combined ADSC’s neuroregenerative potential and adipose ECM’s scaffold potential to construct nerve grafts for the repair of peripheral nerves, in this case, CN. The CN innervate penile erectile tissue and are essential for erection. Due to their proximity to the prostate, bladder, and rectum, these nerves are often damaged during surgeries on these organs, resulting in erectile dysfunction (ED) 12–14. In particular, prostate cancer is the most prevalent malignancy in men and is often treated by radical prostatectomy, causing damage to the CN and subsequent ED 15. To repair the damaged CN, autologous nerve grafting with sural nerves has initially been shown to result in an erectile function recovery rate of 43% 16. However, the harvest of the sural nerves causes donor site morbidity and requires the collaborative support of plastic surgeons. On the other hand, the harvest of the genitofemoral nerves causes minimal morbidity and can be done by the urological surgeon. CN repair with genitofemoral nerve grafting has an erectile function recovery rate of approximately 50% 17,18. On an experimental basis, grafting with decellularized CN from donor rats has also been attempted 19. However, the clinical applicability of such a treatment procedure is rather low because of the need to harvest the CN from human volunteers or cadavers. In the present study we processed lipectomized human and rat adipose tissues into acellular matrices, seeded the rat matrix with allogenic rat ADSCs, and grafted the seeded matrix into rats with transected CN. We observed variable but substantial recovery of erectile function following such grafting.