Objective：To construct the TGF-β3 protein with targeted therapy function in which latency associated peptide, MMP enzyme and TGF-β3 play the role of latent, targeting and therapeutic effect, respectively. In addition, the specific targeted therapeutic effect was investigated by transferring TGF-β3 gene to chondrogenic progenitor cells（CPCs） from perichondrium. Methods：The recombinant of pIRES-EGFP-MMP was constructed by combination of DNA encoding MMP enzyme cutting site and eukaryotic expression vector pIRES-EGFP. LAP and TGF-β3 fragments were obtained from rat embryos by RT-PCR and inserted into the upstream and downstream of MMP from pIRES-EGFP-MMP, respectively, so as to construct the recombinant plasmid of pIRES-EGFP-LAP-MMP-mTGF-β3, which was then transferred to chondrogenic progenitor cells. The genetically modified CPCs were cultured with medium with or without MMP-1. The expression of Collagen II, Aggrecan and TIMP were detected at day 7,14 and 21. Results：pIRES-EGFP-LAP-MMP-mTGF-β3 was successfully constructed and identified by enzyme digestion and sequencing analysis. Only the medium with MMP enzyme can promote the chondrogenesis and the matrix production of genetically modified CPCs． Ｃｏｎｃｌｕｓｉｏｎ：Ｔｈｅ ｅｎｇｉｎｅｅｒｉｎｇ ＴＧＦ-β３ ｃｏｕｌｄ ｈａｖｅ ｔａｒｇｅｔｅｄ ｔｈｅｒａｐｙ ｆｏｒ ｃａｒｔｉｌａｇｅ ｒｅｐａｉｒ ｉｎ ｆｕｔｕｒｅ．