Leucine aminopeptidase 3 (LAP3) is an aminopeptidase which catalyses the removal of N-terminal amino acids and is involved in protein maturation and degradation. In this study, we detected the polymorphisms of LAP3 gene by polymerase chain reaction-single-strand conformation polymorphism (PCR-SSCP) and DNA sequencing methods in 916 individuals from three Chinese cattle breeds including Chinese Holstein, Luxi Yellow and Bohai Black. One novel single nucleotide polymorphism (SNP) (g.24564G>A ss196003366) and four previously deposited SNPs in the GenBank database (g.24794T>G, g.24803T>C, g.24846T>C, g.25415T>C) were detected. Three of the SNPs (g.24794T>G, g.24803T>C, g.24846T>C) were firstly found to be linked completely and regarded as a SNP g.24794M>N by PCR-SSCP and DNA sequencing in the tested breeds. The allelic frequencies and genetic indices of the SNPs were different in three Chinese cattle populations. The SNPs and their genetic effects on milk production traits in Chinese Holsteins were evaluated. Least squares analysis showed that cows with genotype MM had higher fat percentage and protein percentage than genotype NN (P<0.05); and the cows with g.25415T>C-CC genotype had higher protein rate than ones with TT genotype (P<0.05). In addition, eight haplotypes and 23 combined genotypes were identified based on the nine genotypes and the association between combined genotypes and milk production traits were analyzed. Statistic results showed that the cows with genotype combination MAT/MGC have higher protein and fat rate and lower SCS. Our finding demonstrated that the LAP3 gene possibly contributed to conducting association analysis and can be used as molecular marker in milk production traits and other performance for animal breeding.