The pets had suffered spinal injuries which prevented them from using their back legs.
Paralyzed dachshund "Jasper" is one of 23 dogs who had the special cells injected in his legs.
Researchers reporting in the journal Brain say most of the dogs showed considerable improvement and were able to walk on a treadmill with the help of a harness.
The researchers say the transplanted cells regenerated nerve fibers across the damaged region of the spinal cord.
Scientists are cautiously optimistic that a similar technique could be used to cure human paralysis in the future.
