The present invention discloses a culture medium and method for inducing differentiation of pluripotent stem cells into neuroepithelial cells. The culture medium comprises at least two agents for neural induction, wherein the agents includes a Wnt signal agonist and a Smad2/3 inhibitor and the culture medium is a feeder free culture. The method is to culture pluripotent stem cells in the culture medium to differentiate into neuroepithelial cells. The neuroepithelial cells can further differentiate into mature neurons for practical applications, including regeneration medicine and drug discovery for neural disorders.