The microbial transglutaminase (mTGase) is used as a bio-catalyst to repair the wool damages caused by chemical or enzymatic treatments. In this paper, the effect of mTGase on the degree of yarn strength, area shrinkage, wettability, and the dyeing properties of wool was investigated. Through mTGase treatment, the yarn strength was improved about 22.2 %. The knitted wool fabrics treated with mTGase after pretreatment of $H_2O_2$ and protease displayed 7.5 % of area shrinkage and about 22.3 % recovery in tensile strength when compared with those treated without mTGase. Also, mTGase treatment could improve the wettability and dyeing properties of wool fabrics. With the increase of mTGase concentration, the initial dye exhaustion increased significantly and the time to reach the dyeing equilibrium was shortened. It was evident that the improvement of dyeing properties was closely related to the improvement of wettability performance of wool fabric by using transglutaminase.