Hepatocyte transplantation and bioartificial liver (BAL) as alternatives to liver transplantation offer the possibility of effective treatment for many inherited and acquired hepatic disorders. Unfortunately, the limited availability of donated livers and the variability of their derived hepatocytes make it difficult to obtain enough viable human hepatocytes for the hepatocyte-based therapies. Embryonic stem cells (ESCs), which could be isolated directly from the blastocyst inner cell mass, have permanent self-renewal capability and developmental pluripotency and therefore might be an ideal cell source in the treatment of hepatic discords. However, differentiation of hESCs into hepatocytes with significant numbers remains a challenge. This review updates our current understanding of differentiation of ESCs into hepatic lineage cells, their future therapeutic uses and problems in liver regeneration. embryonic stem cell, hepatocyte, differentiation, liver regeneration Liver is the largest organ in mammals and it exerts a variety of important functions, including metabolizing diverse dietary molecules, storing glycogen, detoxifying compounds and swallowing for defense. This organ also has hematopoietic function in embryonic/fetal stage. Since liver has so many pivotal roles, patients with acute hepatic failure or end-stage liver diseases are in great danger. Orthotopic liver transplantation remains the most successful treatment for many cases of end-stage liver disease. However, the efficacy of liver transplantation is limited by the shortage of available donor organs, risk of rejection, infections, and other complications caused by the lifelong immunosupression. Liver cell therapies, including hepatocyte transplantation and bioartificial liver (BAL), are considered promising new approaches to treatment of patients with end-stage liver disease. However, the usage of mature hepatocytes is also hampered by limited tissue source and inability to proliferate and maintain the function for a long term in vitro. Embryonic stem cells (ESCs) might serve as an ideal source for cell therapy because of their immortalization and unique ability to give rise to all somatic cell lineages. ESCs were first isolated from mouse embryos in 1981 [1] , and the establishment of the first human ESC line in 1998 [2] undoubtedly further expanded the potential of ESCs not only as an important tool for basic research but also as a promising source for cell therapy.