The regeneration and repair of cartilage after trauma, cancer, or metabolic disorders is still a major clinical challenge. Through developmental plasticity, adipose tissue-derived stem cells(ADSCs) are important seed cells for the musculoskeletal tissue engineering approach. This study sought to examine the chondrogenic potential of ADSCs induced by human transforming growth factors β3(TGF-β3) and hyaluronic acid(HA) in vivo. After isolation from subcutaneous adipose tissue, ADSCs were expanded in mesenchymal medium. Third generation subcultured mesenchymally differenciated ADSCs were verified by Wright Giemsa stain and CD-identification with FACS(fluorescence activated cell sorter). The experimental groups were divided into 5 groups. All groups included alginate gel. Group I consisted of only mesenchymal stem cells(S), Group II, mesenchymal cells to which TGF-β3(S + TGF) was added, Group III, mesenchymal cells with hyaluronic acid added(S + HA), and Group IV, mesenchymal cells to which both components were added(S + HA + TGF). Control groups(C) consisted of similar polymer formulations but without cells. SCID mice were injected subcutaneously with polymerized alginate solution containing mesenchymal stem cells with TGF-β), HA, or both. Three weeks after implantation, cartilage formation was evaluated by histologic analysis and RT-PCR. Safranin-O and immunohistochemitry showed the greatest production of proteoglycan and collagen type II which suggests chondrogenic matrix in Group IV(S + HA + TGF). The significantly lower production of collagen type I and X was founded in the constructs containing HA groups(S + HA, S + HA+ TGF). In RT-PCR test, the expression of the chondrocyte marker genes, type II collagen and aggrecan were not detected in any group. These findings demonstrated that TGF-β3 and HA could induce ADSCs into a chondrogenic lineage in vivo. This lay the foundation for further optimization of a novel and practical technology for cartilage reconstruction.