Almost all craniofacial structures are derived from cranial neural crest cells. We investigated the induction of neural crest cells from mouse embryonic stem (ES) cells. ES cells have a pluripotent ability to differentiate into a variety of cell types in vitro. To differentiate them into neural crest cells, we used a general method for forming an embryoid body (EB). The differentiated cells in the EBs were characterized by immunostaining using specific antibodies for neural precursors, Nestin and neural crest precursors, AP2α. The results showed that the EBs contained Nestin positive cell masses and AP2α positive cells, indicating that ES cells could differentiate into neural crest cells through neural precursor cells during EB formation. These findings suggest that ES cells might be used for craniofacial regeneration.