The phase transition behaviors and the gelation kinetics of the thermosensitive methylcellulose (MC) solution were studied and the MC gels were tested for the biocompatibility with mesenchymal stem cells (MSCs). The presence of NaCl (0.13 M) decreased the gelation temperature (or cloud point) and increased the rate of the gelation process due to the salting out effect. The gelation temperature decreased and the rate of gelation increased with the increase of MC concentration in the solution due to the chain entanglement effect at higher polymer concentrations. The gelation temperature of the salt-free MC solution approximated to 42 oC and that of the MC solution with 0.13 M NaCl approximated to 40 oC when the polymer concentration was higher than 9 wt%. When MSCs were cultured within the 3D MC gels, it was found that MSCs could aggregate and maintain their viability up to 28 days. The biocompatibility of MC gels with MSCs suggested that MC gels could be considered as an injectable hydrogel for tissue engineering application.