Aim: To observe the effect of green fluorescent protein (GFP) plasmid in the transformation of mouse embryonic stem cell (ESC) and to observe the effect of CFP as a tracer for cell survival and differentiation after transformed ESCs were transplanted into striatum of normal rats. Methods: Firstly, great amounts of high-purity GFP plasmid DNA were extracted from competence Escherichia coli, and then the transformed compound of CFP plasmid and liposome was co-incubated with ESC so as to transfer GFP plasmid into ESC and screen CFP-expressed ESC. Twenty-one days after GFP-expressed ESC was transplanted into the striatum of the living rats, the combination of GFP labeling and red fluorescence staining of NeuN and glial fibrillary acidic protein(GFAP) was observed. Results: Both single ES cell and cell aggregates expressed bright-green GFP after he transformation, and about 60% of ESCs were labeled with GFP. The GFP-labeled cells could still be found 21 days later, some of which were differentiated into NeuN-expressed neurons or GFAP-expressed glial cells. Conclusion: Liposome transfers GFP plasmids into rat ESC. CFP can be used as the tracer for observing cell survival and differentiation of transplanted cells into neurons and glial cells 21 days after the transplantation of GFP-expressed ESC. That liposome aids the transformation of GFP plasmid into ESC is a better way in tracing transplantation.