A gripper mechanical design using a pneumatic system was developed to successfully grip, hold, and release a seedling plug for transplanting it. The gripper comprised of two air cylinders and shovel-type fingers. The gripper can grasp and hold a seedling by sliding the two fingers attached to the two separate air-cylinders, mounted at an angle of 15$^{circ}$ When releasing a plug, retraction of the fingers gives a seedling little attachment to the gripper. To prevent seedling from attaching to the fingers, press-plates were attached to the end of the gipper. Transplanting performance of the developed gripper was tested with cucumber seedlings at different soil moisture contents. Overall transplanting performance of developed gipper was higher than the performance of the previously developed gripper. Best transplanting result was achieved at medium level of soil moisture content.