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TThe emerging Human Pluripotent Stem Cell (hPSC) technology brings many excitements for regenerative medicine and drug discovery. Rapid advancements in hPSCs have been made in the past several years, including defined culture systems, procedures of directed differentiation, the demonstration of hPSC applications in drug screening, the establishment of various disease models, and the evaluation of therapeutic potential in treating incurable diseases through transplantation. This article highlights recent advancements in these areas and the current challenges for clinical applications based on hPSC technology..