The present invention pertains to a method for promoting the differentiation of mesenchymal stem cells into mature hepatocytes or hepatocyte progenitors. To this end the invention employs bile acid receptor agonists, in particular bile acids such as tauroursodeoxycholic acid (TUDCA), for inducing the hepatic differentiation process in a mesenchymal stem cell population. Hepatocytes or their progenitors as produced in accordance with the methods of the invention will find application for liver regeneration, in organ or cell transplantation, and as a treatment of degenerative liver diseases such as liver cancer or liver cirrhosis.
