The human hepatocellular carcinoma was successfully heterotrasplanted into nude mice and 10 passages were made seriously during 11 months. Initial take rate was 14.3% and then the take rate increased to 100% after the 3rd passage. Histological, morphological, ultrastructural and biological investigation and chromosome analysis showed that the characteristic of transplanted tumor was identical to that of characteristics of human donor tumor. Through serial passages no metastatic signs were found grossly and under the microscope in the lymph nodes, liver and lung of the nude mice. Result also showed that the model retained some functions of the original tumor. The transplanted tumor could secret a-fetoprotein (AFP), r-glufamyl transpeptidase (r-GT). Acidic isoferritin (AIF) also could be detected. The tumor tissue of xenograft model was cultured in vitro in order to develop a permanent cell line. We found that the tumor specimen of the later passages grew more rapidly than the earlier ones. Up to now 3 cell passages were made. In this paper, a reliable animal model of human hepatocellular carcinoma is provided for studies of clinical diagnosis, treatment, antitumor drug screen test, etc.