Abstract:Knee osteoarthritis (KOA), a highly disabling degenerative joint disease, cannot have its cartilage damage reversed by traditional treatments. Although mesenchymal stem cells (MSCs) possess the potential for chondrogenic differentiation and immunomodulation, native MSCs are plagued by several bottlenecks, including low homing efficiency (with less than 5% reaching the injured area), short retention time in the joint cavity (less than 24 hours), and abnormal hypertrophic differentiation (with high expression of Col10a1/Runx2) in the inflammatory microenvironment. This review proposed a core strategy of engineering MSCs with targeting peptides: Targeted modification: Through bionic design, the surface of MSCs was modified using click chemistry or membrane hydrophobic insertion methods, which significantly improved the homing efficiency (with the local concentration increased by 3-fold) and retention time (≥7 days). Synergistic delivery system: MSCs were integrated with nanocarriers to form "dual-engineered MSCs", which simultaneously and precisely regulated chondrogenic differentiation and remodeled the immune microenvironment. Preclinical studies (on osteoarthritis mice/human cartilage explants) showed that engineered MSCs promoted the regeneration of cartilage matrix and improved pathological scores. Clinical trials confirmed that allogeneic MSCs and combined therapy could relieve pain , improve function, and delay disease progression. This therapy was recommended in China's Clinical Practice Guidelines for Osteoarthritis (2024 Edition) for the stepped treatment of early-stage KOA. For clinical translation, issues such as the stability of targeting peptides, the long-term safety of nanocarriers, and standardization need to be addressed. Future directions include the development of enzyme-resistant peptides (via D-amino acid substitution), cell-free therapy based on targeting peptides and exosomes, artificial intelligence-assisted peptide design, as well as the establishment of automated production processes and multi-dimensional efficacy standards. These efforts aim to promote engineered MSCs to become a disease-modifying osteoarthritis drug for moderate-to-early-stage KOA.