The success achieved over the last decade with islet transplantation has intensified interest in treating diabetes,not only by cell transplantation,but also by stem cells.The formation of insulin-producing cells from pancreatic duct,acinar,and liver cells is an active area of investigation.Protocols for the in vitro differentiation of embryonic stem(ES)cells based on normal developmental processes,have generated insulin-producing cells,though at low efficiency and without full responsiveness to extracellular levels of glucose.Induced pluripotent stem cells,which have been generated from somatic cells by introducing Oct3/4,Sox2,Klf4,and c-Myc,and which are similar to ES cells in morphology,gene expression,epigenetic status and differentiation,can also differentiate into insulin-producing cells.Overexpression of embryonic transcription factors in stem cells could efficiently induce their differentiation into insulin-expressing cells. The purpose of this review is to demonstrate recent progress in the research for new sources ofβ-cells, and to discuss strategies for the treatment of diabetes.