A thermoreversible hydrogel of poly(NiPAAm-co-AAc) was used as an injectable cell and growth factor delivery carrier for cartilage tissue engineering. Rabbit chondrocytes were embedded in composite hydrogels coencapsulated with transforming growth factor beta 3 (TGF beta 3). Hydrogel constructs consisting of embedded cells encapsulated by the thermoreversible hydrogel served as controls to assess the effects of TGF beta 3 on chondrogenic differentiation. The hydrogel constructs were injected subcutaneously into nude mice and then monitored for up to 8 weeks after injection. After 8 weeks of implantation, the engineered cartilage acquired normal histological and biochemical properties. These results highlight the potential of growth factor in a hydrogel embedded with chondrocytes as a candidate material for neocartilage formation.