Objective To investigate the technical points and the clinical effectiveness of transcatheter arterial chemoembolization (TACE) combined with CT-guided ~(125)I radioactive particle implantation for the treatment of liver cancer. Methods Twenty-seven patients with hepatic cancer, proved by color Doppler ultrasonography, CT and AFP, were enrolled in this study. All the patients received embolization therapy with lipiodol not long before. Of the 27 patients, preoperative CT scanning was performed in 16. Based on the CT findings, the therapeutic protocol was formulated to determine the amount and site of ~(125)I radioactive particle to be implanted. When drawing the outline of target area, the targeted sedimentation extent which was delineated on CT scan should be exceeded the area with deposits of lipiodol by 0.5-1.0 cm. The average energy of ~(125)I radioactive particle was 27-35 keV. Results Of 27 patients, complete remission was seen in 2, partial remission in 16, unchanged condition in 6 and exacerbation of the condition in 3, with a total efficiency of 66.7%. The patients were followed up for 6 months. One patient died of distant metastasis and the remaining ones survived so far. Conclusion Transcatheter arterial chemoembolization combined with CT-guided ~(125)I radioactive particle implantation is a safe and effective treatment for liver cancer.