The need for a reliable source of functional beta cells has led to many new investigations in an effort to drive the differentiation of embryonic stem cells, of putative stem cells, or of pancreatic progenitor cells to form new beta cells. There appears to be a plasticity of pancreatic cells in vitro that may be exploited to generate the necessary beta cells. Major questions still remain: whether there are true pancreatic stem cells, what are the pancreatic progenitor cells after birth, and whether expanded beta cells themselves could serve as the source.