An analytical model of restricted diffusion in bovine optic nerve is presented. The nerve tissue model is composed of two different objects: prolate ellipsoids (axons) and spheres (glial cells) surrounded by partially permeable membranes. The free diffusion coefficients of intracellular and extracellular water may differ. Analytical formulas for signal loss due to diffusion in the pulsed gradient spin echo (PGSE) experiment for this tissue model are derived. The model is fitted to experimental data for bovine optic nerve. The obtained model parameters are shown to be reasonable. The model describes all of the characteristics of the PGSE data: anisotropy, upward curvature of decay curves, and diffusion time dependence. The validity and sensitivity of the model are also discussed.