In order to solve the problems that the integrity of the pot destroyed by the transplanting mechanism, the poor perpendicularity of planting caused by the asymmetry of the hole, and the poor quality of planting caused by the process of punching and planting, a kind of potted vegetable seedling transplanting mechanism with punching hole was put forward. The process of punching and planting could be alternately implemented by the mechanism. The punching process at the planting position of the previous potted seedling was completed by the puncher when a seedling was planted by the transplanting arm, which ensured the planting sequence. The holes formed by the puncher were symmetrical, the soil reflux was even and conducive to ensure the perpendicularity of planting. The protruding seedling picking device was used in the seedling picking process to protect the integrity of the potted seedling matrix. Based on the kinematic mechanism analysis of potted vegetable seedling transplanting mechanism with punching hole, the optimization design software was developed and the parameter optimization design was completed. The virtual simulation experiment and a series of bench tests of transplanting mechanism were carried out. The attitude of key positions such as seedling picking, punching and planting was analyzed. Trajectory and attitude verification experiments showed that the specific trajectory and attitude formed by the mechanism could complete the process of seedling picking, transporting, punching and planting in turn. The seedling picking experiment showed that the process seedling picking was realized and the integrity of potted vegetable seedlings matrix was effectively ensured.