Provided is a method for generating pancreatic bud cells, having the step of culturing PDX1+/NKX6.1+ cells in a medium containing KGF, EGF and a BMP inhibitor. The culturing step may be performed in suspension cultures or in adherent cultures. When the cells are cultured in adherent cultures, the cells may be cultured in a medium further containing a ROCK inhibitor or a nonmuscie myosin II inhibitor.