In the last year we have made significant progress towards our goal of “Molecular dissection of adult liver regeneration to guide the generation of hepatocytes from pluripotent stem cells”. We have identified the mechanism of how microRNA-21 promotes liver regeneration. We are currently working on translating this understanding into a therapeutic strategy for liver failure. We have also gained in-depth insight into the molecular regulation of differentiation of liver progenitor cells into hepatocytes. We have begun to use this insight to direct the differentiation of pluripotent stem cells into hepatocytes that are effective in liver cell therapy.