Neurodegenerative diseases such as Alzheimer’s disease and Parkinson’s disease are the most common in older people. Current treatment includes oral medications which is not sufficient and cannot target the brain directly due to limitation like susceptibility to metabolism leading to poor bioavailability and difficulty in crossing Blood Brain Barrier. Hence treating these diseases with Neurotrophic Factors can provide better protection against neuronal degeneration. Neurotrophic factors plays a major role in survival and protection of neurons. Parkinson’s disease and Alzheimer’s disease show changes in regulation of particular Neurotrophic Factors. Appropriate and targeted delivery of these factors directed to various portions of the brain is a major challenge due to the tendency of depletion of majority of drug in metabolism as well as inability of drug to penetrate blood brain barrier. Cell encapsulation mechanism can remove these barriers to a greater extent. Cell encapsulation technology represents an alternative, non-viral approach for the delivery of biologically active compounds to required site of action. This strategy involves the immobilization of genetically engineered producer cells within semi permeable membrane. These genetically engineered cells secrets a protein with certain therapeutic potential. The cells are encapsulated in an immune-isolating material that makes them suitable for transplantation. Various Neurotrophic factors have been evaluated in animal models for their effect on neurodegenerative disease. Cell encapsulation is able to provide targeted and continuous delivery of therapeutic molecules that can be distributed in various region of the brain. This review will summarise the various neurotrophic factors, their functions and their use in the treatment of Parkinson’s and Alzheimer’s disease via cell encapsulating approach.

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