Spinal cord injury (SCI) imposes a significant economic burden on individuals and society, with limited options for repairing the central nervous system after injury. Cell transplantation therapy, particularly using olfactory ensheathing cells (OECs), has shown promise. However, the neuroprotective mechanisms underlying genetically modified OECs remain unclear. This study aimed to investigate the effects of Dynamin-2 (Dnm2) gene-modified OECs (Dnm2-OECs) on SCI repair in a rat model. OECs were harvested from three-day-old rats. Adult rats were divided into sham, SCI, SCI-OEC, and SCI-Dnm2-OECs groups. Dnm2-OECs were transplanted one day post-SCI model, and recovery was assessed through BBB scores, histological analyses, and molecular markers of inflammation. Results showed that the purity and infection efficiency of OECs were 87.28 ± 7.65% and 89.04 ± 5.56%, respectively. Dnm2-OECs survived for at least 28 days post-transplantation and significantly improved BBB scores by day 21. Additionally, neuronal counts increased, syringomyelia decreased, demyelination lessened, and mitochondrial structure improved. Dnm2 levels rose in spinal tissue, while NF-κB pathway proteins and pro-inflammatory cytokines (TRAF6, IL-17, IL-1β and TNF-α) were reduced. Microglial cells (Iba1) decreased correspondingly. These results indicate that Dnm2-OECs transplantation enhances neurological recovery after by inhibiting the NF-κB signaling pathway, offering a potential therapeutic strategy for SCI repair.