Objective Investigate to the effect of transplantation of autologous peripheral blood stem cells on diabetic peripheral neuropathy of the patients with diabetic lower limb arteriosclerosis obliterans. Methods 20 patients, rhG-CSF 600 μg/d for 5 days. On the fifth day, PBSC were collected. Sooner the PBSC were intramuscularly injected into the two limbs of patients. To do nerves and muscle electrophysiology examination of anticnemion and fibula nerves before and three months after autologous peripheral blood stem cells. Result Nerves and muscle electrophysiology examination of 38 lower limbs of 20 patients showed that latent period of anticnemion nervimotor was shortened, 4.91±1.42mS prior treatment, 4.56±1.47mS, post-treatment, p<0.05. Anticnemion sensory nerves conduction velocity and wave amplitude significantly increased, 10.23±16.51m/s and 0.18±0.34mV prior treatment, 31.33±13.50 m/s and 0.78±0.93 mV post-treatment,both of them p<0.05, Latent period of fibula nervimotor was shortened too, 4.18±2.92mS prior treatment, 3.81±2.93mS post-treatment, p<0.05. Fibula nervimotor and sensory nerves conduction velocity significantly increased, 37.45±15.59m/s prior treatment, 40.69±15.96 m/s post-treatment, p<0.05 and 30.89±20.31m/s prior treatment, 43.23±17.36 m/s post-treatment, p<0.05, Conclusion Transplantation of autologous peripheral blood stem cells significantly improved the damage of diabetic peripheral neuropathy.