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The mechanical forces such as compression and shear stresses are concerned in the development and maintenance of articular cartilage in the body. It means the dynamic environment is an important factor for formation of cartilage using stem cells. The objective of this study is to evaluate the effect of dynamic compression for the differentiation of bone marrow stromal cells (BMSCs) within an elastic scaffold and the formation of cartilaginous tissue. A highly elastic scaffold was fabricated from elastic poly(L-lactide-co-ɛ-carprolactone)(5:5) by a gel-pressing method. BMSCs were seeded onto the scaffolds and the continuous compressive deformation was applied to them with 0.1Hz and 5% strain for 10 days in the chondrogenic media. Also, the chondrocytes-seeded constructs were implanted in nude mice subcutaneously to investigate their biocompatibility and cartilage formation. Constructs were characterized by biochemical analysis, histological studies, and RT-PCR. Mechano-active scaffolds having a complete rubber-like elasticity were prepared. They could be easily twisted and bended and showed almost complete (over 97%) recovery at strain applied of up to 500%. From biochemical analysis, the accumulation of chondral extracellular matrix showed that chondrogenic differentiation was sustained and enhanced significantly by dynamic compressive stimulation. Histological analysis showed that implants stimulated mechanically by compression formed mature and well-developed cartilaginous tissue, as evidenced by bone marrow derived chondrocytes within lacunae and an abundant accumulation of sulfated GAGs. Also, gene expression by BMSCs in constructs showed upregulation of aggrecan and type II collagen mRNAs in response to dynamic compression. In conclusion, the periodic application of dynamic compression can encourage BMSCs to differentiate to chondrogenic lineage, maintain their phenotypes and enhance GAGs production and consequently, improve the quality of cartilaginous tissue. [ABSTRACT FROM AUTHOR]