Objective To observe the ability of induced ectopic bone using skeletal muscles satellite cells(SMSCs) from newborn green fluorescence protein(GFP) transgenic mice mediated by Ad- BMP2. Methods Transplantation of SMSCs transduced with Ad- BMP2 into back lamb muscles of subfascia in wildtype 129sv mice with a complex of collagen scaffords, then the tissue histologic examination, X ray plain film, fluorescence microscopy were used. Results Transplantation of SMSCs transfected with Ad- BMP2 into back lamb muscles of subfascia generated ectopic bone formation involving GFP- positive osteoblasts and osteocytes 2 weeks and mature bone formation 4 weeks after transplantation. SMSCs non- transfected with Ad- BMP2 failed to induce ectopic bone formation. Conclusion SMSCs retain differentiation potentitality into osteoblasts in response to Ad- BMP2. They are useful tools for analyzing the process of osteoblast differentiation in vivo after transplantation.