Recently, several stem cell-based approaches have been considered as a novel treatment for stroke, such as delivery of non neural stem cells, stimulation of endogenous neural stem cells, and transplantation of neural stem cells. Among them, transplantation of neural stem cells is thought to have an advantage for functional recovery through neuronal replacement rather than other mechanisms. We demonstrated that human iPS cells derived neural stem cells form functional neurons and improve recovery after grafting in stroke-damaged rodents without tumor formation. Here we discuss about the potential and clinical application of iPS cells for stroke therapy.