Central nervous system trauma can cause loss of functional sensory neurons and motor functions that results in death of neuronal cells and axon degeneration. For this purpose, therapeutic approaches to enhance repair mechanisms spinal cord injury (SCI) is reflected to be a difficult task that requires thoughtful strategy. Hydrogel scaffolds in the presence of stem cells could repair damaged SCI due to their ability to support cellular viability, motility, and differentiation. In this study, we investigated the effectiveness of a biomimetic composite hydrogel of chitosan and gelatin containing endometrial stem cells (EnSCs) as a minimally invasive treatment of SCI in an animal model. Moreover, the simultaneous, effect of intraperitoneal injection of atorvastatin drug was assessed for animal models. From the results, morphological and cell viability studies demonstrated favorable seeding microenvironment and viability in the hydrogel. The transplanted hydrogel containing EnSCs into hemisected SCI rats showed recovery of sensory and motor functions by confirming locomotor activity evaluation using Basso, Beattie, and Bresnahan test. The growth of neuronal cells confirmed with immunohistochemical study. The findings in this study suggested that combination therapy using biomimetic hydrogel seeded with stem cells as well as atorvastatin injection has the potential to heal SCI through neuroinflammation attenuation, improvement of functional recovery, and limit the secondary damages.