Human umbilical cord blood (UCB) contains hematopoietic stem cells (HSCs) and mesenchymal stem cells (MSCs), both of which are regarded as valuable sources for cell transplantation and cell therapy. Adherent cells expressing MSCs-related antigens such as SH2, CD13, CD29, and ASMA, have been isolated from a mononuclear cell fraction of human UCB. Under proneurogenic conditions, these UCB-derived adherent cells rapidly assumed the morphology of multipolar neurons. Both immunofluorescence and RT-PCR analyses indicated that the expression of a number of neural markers including Tuj1, TrkA, GFAP and CNPases, was markedly elevated during this acute differentiation. The neurogenic potential of UCB-derived may facilitate stem cell therapeutic approaches to neurodegenerative diseases.