The authors analyzed the therapeutic effect of transarterial chemoembolization in 37 cases of hepatocellular carcinoma. Changes of the tumor volume were analyzed on the base of follow up CT in one month interval. The chemotherapeutic emulsion was prepared by mixing of ADR 30mg MMC 10mg Lipiodol 10cc and 5cc of 60% diatrizoate sodium meglumine. In group A(n=20) chemotherapeutic agent was infused into hepatic artery followed by Gelfoam embolization and only chemotherapeutic emulsion was infused without Gelfoam embolization in group B(n=17) The mean diameter of the tumors was 9.7cm in group A and 9.0cm in group B. The total response rate (CR+PR) was 45% in group A and 29% in grooup B. Transarterial infusion of Lipiodol laden chemotherapeutic agent followed by Gelfoam embolization is one of the most effective methods in the treatment of hepatocelluar carcinoma.