The neural crest cells give rise to neurons and glia in the peripheral nervous system, which is an important component of the nervous system. Here we developed a scalable process of inducing neural crest stem cells (NCSCs) from hESCs/iPSCs by a combination of growth factors in medium conditioned on stromal cells, and showed that NCSCs could be purified by p75 using FACS. In vitro-expanded NCSCs were able to differentiate into neurons and glia (Schwann cells) of the peripheral nervous system (PNS) as well as mesenchymal derivatives.