The first testicle transplant was in fact performed on roosters by the German physiologist, Arnold Berthold, in 1848. Berthold castrated six male birds and noticed that the birds lost their plume, their aggressive tendencies and all interest in Henhouse magazine centerfolds. He then re-implanted the testicles in two of the birds and in two others, transplanted donor testicles from the last two birds. All four re-testiclized roosters regained their strut and resumed their roosterish ways. Although his experiment was ignored for half a century, Berthold is now held in high regard as the father of modern endocrinology.
The first recorded human transplant was performed in Philadelphia in 1911 by Drs. Levi Hammond and Howard Sutton. The recipient was a 19 year man who had been kicked in the balls. The donor was another young man who had recently bled to death (the alternative would have been a sheep, apparently). Not surprisingly, given the lack of knowledge of immune system functioning at the time, the organ was rejected and the episode was largely forgotten.
But the granddaddy of testicle transplants, the man who truly deserves primacy in this questionable field, was a Chicago urologist by the name of Victor Lespinasse. Lespinasse's operations and their reported success ignited a flurry of testicle transplants in the early 1920s in what has to be one of the weirdest episodes in medical history.
Lespinasse's first transplant patient was a 33 year old man who had the misfortune of losing both testicles independently. The first was lost in a botched hernia operation, the second after an accident. After the loss of the second testicle, the man found he was unable to perform sexually and sought Lespinasse's help in January of 1911. Operating under the assumption that the testicles were the source of masculine vigor, Lespinasse performed the first ever testicle transplant in 1911, three months earlier than the Hammond/Sutton procedure, but he didn't write about it until 1914 (it's "snooze, you lose" in the world of scientific accreditation).
Rather than transplant the donor testicle intact (it was believed to have been purchased from some poor sap who needed the dough), Lespinasse grafted testicle slices (theory being that thin slices would more likely fuse to the existing tissue and not be rejected) in the scrotum and rectus muscle. According to Lespinasse's reports, four days after the operation the recipient reported a strong erection and checked out of the hospital to put it to good use. After a follow-up two years later, Lespinasse reported that the man's virility remained intact.
Source: http://www.altpenis.com/penis_news/testicle_transplants.shtml