The compact storage and efficient evaluation of feasible assembly sequences is one crucial concern for assembly sequence planning. The implicitly symbolic ordered binary decision diagram (OBDD) representation and manipulation technique has been a promising way. In this paper, Sharafat’s recursive contraction algorithm and cut-set decomposition method are symbolically implemented, and a novel symbolic algorithm for generating mechanical assembly sequences is presented using OBDD formulations of liaison graph and translation function. The algorithm has the following main procedures: choosing any one of vertices in the liaison graph G as seed vertex and scanning all connected subgraphs containing seed vertex by breadth first search; transforming the problem of enumerating all cut-sets in liaison graph into the problem of generating all the partitions: two subsets V1 and V2 of a set of vertices V where both the induced graph of vertices V1 and V2 are connected; checking the geometrical feasibility for each cut-set. Some applicable experiments show that the novel algorithm can generate feasible assembly sequences correctly and completely.