Multipotency of neural crest cells (NC cells) is thought to be a transient phase at the early stage of their generation; after NC cells emerge from the neural tube, they are specified into the lineageârestricted precursors. We analyzed the differentiation of earlyâstage NCâlike cells derived from Sox10âIRESâVenus ES cells, where the expression of Sox10 can be visualized with a fluorescent protein. Unexpectedly, both the Sox10+/Kitâ cells and the Sox10+/Kit+ cells, which were restricted in vivo to the neuron (N)âglial cell (G) lineage and melanocyte (M) lineage, respectively, generated N, G, and M, showing that they retain multipotency. We generated mice from the Sox10âIRESâVenus ES cells and analyzed the differentiation of their NC cells. Both the Sox10+/Kitâ cells and Sox10+/Kit+ cells isolated from these mice formed colonies containing N, G, and M, showing that they are also multipotent. These findings suggest that NC cells retain multipotency even after the initial lineageârestricted stages. Developmental Dynamics 240:1681â1693, 2011. © 2011 WileyâLiss, Inc.