A miniaturized video camera system integrated with a scaffold for blood vessels and tissue induction that is implantable into an animal body was developed. A small auto-focus camera with USB interface was used as an imaging device. A close-up lens was added to reduce the focusing point. Also 45-degree reflecting prism was added for the compact system design. A spongy polyglycolic acid sheet of 0.3 mm thickness was used as a scaffold. The observation area was about 8 x 6 mm and the tissue was induced from sideways. The camera was implanted into a muscular layer of a goat for more than 60 days to observe the skeletal muscle induction. Tissue induction to the scaffold started from second week and it took about 5 weeks to cover the entire area by the tissue, Vigorous angiogenesis was observed at the front region of tissue induction resulting dense distribution of capillary vessels and red blood cells. The density of capillary vessels reduced considerably behind the front region and arterioles and venules started to appear.