Mesenchymal stromal/stem cells (MSCs) possess unique immunomodulatory and regenerative properties, making them ideal candidates for addressing a variety of disorders. With an increasing number of clinical trials, reliable sources are needed to obtain sufficient cell numbers and to circumvent inherent limitations associated with primary cells. Induced pluripotent stem cells (iPSCs) can be differentiated into various somatic cell types and are able to proliferate indefinitely in culture. Differentiation of iPSCs presents a viable alternative in order to create target cell types for both proof-of-concept research and therapeutic applications. In this chapter, we present a protocol to derive MSC-like cells from iPSCs as well as methods of characterizing these cells.