The present study presents a model for creation of neuroma-in-continuity in the rabbit, confirmed by histologic study, electrophysiology, and examination of molecular markers. Twelve New Zealand rabbits were used. The lateral fascicule of the peroneal nerve with 15-mm in length was resected. In the intervals from 4 to 6 weeks postoperatively, the histology showed the typical pathologic changes of neuroma by hematoxylin-eosin (HE), Luxol fast blue, and Van-Gieson staining. As compared with the healthy nerve, the motor nerve conduction velocity (MCV) and compound motor action potential (CMAP) were found significantly slowed and reduced. The expression of ciliary neurotrophic factor (CNTF) in nerve and calcitonin gene-related peptide (CGRP) mRNA in L7, S1 dorsal root ganglia were downgraded and upgraded, respectively, with formation of neuroma-in-continuity. These electrophysiologic and molecular markers' expression data can be used as reliable parameters for evaluation of management of the neuroma-in-continuity.