Stem cells of the central nervous system (CNS) generate neural cells. Attempts have been made to transplant such cells to treat neurodegenerative diseases in animals. However, these techniques are of limited utility because of cell rejection and tumorigenicity. Recently, induced pluripotent stem cells (iPSCs) have been generated by stimulating the activities of genes encoding OCT4, Sox2, Klf4, and c-Myc. The results show that somatic cells can give rise to all types of body cells, including neurons required for transplantation, in the absence of any rejection response. In addition, some novel technologies employed to create iPSCs have resulted in a reduction in tumorigenicity. iPSCs are also useful in diagnosing neural diseases, because such cells are generated from skin fibroblast, making them easier to use in various tests including those assessing differentiation and transplantation. In the present work, we show that iPSCs can be generated from cells of patients with neurological diseases (Parkinson’s disease, ALS, and Huntington’s disease), and that it is possible to direct differentiation of these cells into neurons and glial cells. Experimental and clinical efforts to repair neural disease or injury using iPSCs, conducted in both academic institutes and private facilities, are also described.