The generation of retinal pigment epithelial (RPE) cells from pluripotent stem cells is a topic of interest over the past few years as dysfunctional RPE cells are a primary cause of ocular diseases. However, a number of obstacles need to be overcome before these cells can be used in clinical trials. This review aims to provide an overview of the latest reports on the generation of RPE cells from human pluripotent stem cells. Challenges that need to be addressed in future studies for their therapeutic applications are discussed. Proposed research goals for this fast growing field are highlighted.