Astrocytes play a critical role in maintaining the structural health of the neurons. Astrocytes create the brain environment by building up the micro-architecture of the central nervous system, maintain brain homeostasis, and control the metabolism of neural cells and synaptic activity. Astrocytes are involved in all types of brain pathologies from acute lesions to chronic neurodegenerative processes such as Alexander’s disease, Alzheimer’s disease, Parkinson’s disease, multiple sclerosis, and psychiatric diseases. It was suggested that astrocytes play a negative role following the event of injury because they contribute to the formation of glial scar that inhibits the regeneration and growth of neurons. Recent compelling research shows that reactive astrocytes protect injured tissues and cells in various ways. Studies revealed that transplantation of astrocytes and glial-restricted precursor (GRP)-derived astrocytes (hGDAs) promoted neural regeneration process. In this chapter, we summarize the function of astrocytes in normal neural tissue and the cellular process of astrocytes in neural lesion. We also review the interaction of astrocytes and biomaterials and its potential application in neural regeneration.