Eight pigs had the transplants and recovered well, developing working swallowing muscles to squeeze food down towards the stomach.
Five survived to the six-month end point of the trial and their grafts had functional muscle, nerves and blood vessels.
Prof Paolo De Coppi, who led the research team at Great Ormond Street Hospital and University College London, said he hoped to be able to offer the treatment to children within the next five years.
“The oesophagus is a really complex organ, without a blood supply from its own vessels, so it cannot be ‘transplanted’ in the way you might expect.
“To develop alternatives, it is essential to work with animal models that closely reflect human anatomy and function.”
He said the graft would not be suitable for adults with other oesophageal problems such as cancer because it wouldn’t be the right size. It is designed to grow with the children as their oesophagus gets bigger and longer.