This invention provides populations of mesenchymal cells obtained frompluripotent stem cells by differentiating them ex vivo. Multipotentmesenchymal cells can in turn be differentiated into more specialized celltypes such as osteoblasts, with properties that make them suitable forreconstituting musculoskeletal cell function in an individual. Thecompositions, methods, and techniques described in this disclosure can be usedfor a variety of commercially important diagnostic, drug screening, andtherapeutic applications.