The generation of functional hepatocytes from human pluripotent stem cells (hPSCs) is a major research goal in the stem cell field. Applications for hPSC-derived hepatocytes include the study of drug metabolism and hepatotoxicity, and the development of cell-based therapies for patients with liver failure. For hPSC-derived hepatocytes to be considered useful for these and other pre-clinical or clinical applications, the procedure for their production must be consistent and scalable, and the differentiated cells must exhibit functional properties similar to their in vivo counterparts. In this webinar, Dr. David Hay of the MRC Centre for Regenerative Medicine at the University of Edinburgh presents data on the derivation of definitive endoderm from human pluripotent stem cells and its further differentiation into metabolically active hepatocytes. He also discusses the applications of this research for drug development and cell therapy.