Direct reprogramming of somatic cells into induced pluripotent stem cells (iPSCs) provides an opportunity to develop novel personalized treatment options for numerous diseases and to advance current approaches for cell-based drug discoveries and disease modeling. The ability to differentiate iPSCs into relevant cell types is an important prerequisite for the successful development of iPSC-based treatment and modeling strategies. Here, we describe a protocol for the efficient differentiation of human iPSCs into functional keratinocytes. The protocol employs treating iPSCs with retinoic acid and bone-morphogenetic protein-4 to induce differentiation toward a keratinocyte lineage, which is then followed by the growth of differentiated iPSCs on collagen type I- and collagen type IV-coated dishes to enrich for iPSC-derived keratinocytes.