In the present study restorative potential of fetal cholinergic rich cell suspensions in ameliorating cognitive deficits in rats perinatally exposed to lead was studied. Lactating dams with 1-day old litters were given 0.2% (w/v) lead acetate in drinking water throughout lactation from postnatal day (PND) 1 to PND21 at the end of which the treatment was stopped and the animals were weaned. On PND42 lead exposed rats were given bilateral, intrahippocampal, cholinergic rich fetal neural transplants (approximately 60,000 cells per site) and subsequently assessed 3 and 6 months posttransplantation. Control animals (Sham operated and transplanted) were also run in parallel. Lead exposed rats exhibited a decreased learning ability and locomotor activity. A significant decrease in the levels of acetylcholinesterase and sodium potassium ATPase Na+,K+-ATPase activity was observed in hippocampal region of lead exposed rats. The levels of lead were increased by fivefold in the hippocampal region of lead exposed rats. Transplantation showed marginal improvement in the above impairments at 3 months which were more marked at 6 months. Lead levels at 6 months were not significantly higher in lead exposed rats as compared with the control. Results confirm previous findings that fetal neural transplants help in restoring the lost functional deficits and demonstrate their restorative potential in case of lead induced deficits.