A method for restoring native chondrocyte phenotype and functions of, and/or increasing type II collagen and AGN expression levels and GAG accumulation level in dedifferentiated chondrocytes which have been subcultured and expanded in vitro, which comprising culturing the said dedifferentiated chondrocytes in vitro with a medium comprising type II collagen, or its biologically active peptide fragment(s), or analogs effective to restore native chondrocyte phenotype and functions of, and/or increasing type II collagen and AGN expression levels and GAG accumulation level in dedifferentiated chondrocytes.