The factors contributing to local recurrence and survival rates of patients with hepatocellular carcinoma (HCC) were analyzed by univariate and multivariate analysis using the Cox proportional hazard model in 356 patients treated by transcatheter arterial chemoembolization (TAE) or transcatheter arterial chemolipiodolization (TAI). Potential predictors of recurrence and survival analyzed included: patient characteristics (gender and age), basal liver disease, tumor characteristics (number of tumors, size of tumor nodule and presence of vascular invasion), Child classification, serum albumin and total bilirubin level, prothrombin time, treatment modality (TAE or TAI) and serum levels of the tumor markers [alpha-fetoprotein (AFP) and des-gamma-carboxy prothrombin (PIVKA-II)]. In 259 patients (72.5%) with confirmed complete necrosis of the primary lesion, the local recurrence rate in the TAE group was significantly lower than that of the TAI group (P<0.05). Size of tumor nodule, vascular invasion, treatment modality (TAE or TAI) and serum PIVKA-II level were significant independent risk factors contributing to local recurrence. Serum albumin level, size of tumor nodule, vascular invasion and serum AFP level were significantly independent prognostic factors contributing to survival. When size of tumor nodule was greater than 30 mm in diameter and without vascular invasion, TAE had a survival benefit superior to TAI.