Nerve guides are the bridging devices used to bridge the proximal and the distal ends of the dissected peripheral nerves. Biocompatible nerve guides comprising polycaprolactone/polyvinyl pyrrolidone polymer were developed using centrifugal spinning technique. The developed nerve guides were loaded with triterpenoids isolated from Centella asiatica. Drug-releasing studies were carried out at various drug-loading percentages in the phosphate buffer releasing medium. The release studies confirm that the drug can be released into the medium to the extent of 50%. Cell culture studies also confirm that the triterpenoids-loaded nerve guides are biocompatible, provide an oriented substratum for cell adhesion and proliferation which is necessary for guided tissue regeneration.