The present invention provides methods for isolating pancreatic stromal cells from pancreatic tissues. The pancreatic stromal cells isolated according to the present invention are capable of being propagated in vitro and differentiated into cells of a pancreatic ß-cell lineage. The isolated pancreatic stromal cells can be induced to differentiate in vitro into fully or partially differentiated pancreatic cells for transplantation into a patient in need thereof. Alternatively, the isolated pancreatic stromal cells can be directly transplanted into a patient in need thereof and differentiate in vitro into the desirable cell types.
