Human amnion epithelial cells (hAECs) are a heterologous population positive for stem cell markers; they display multilineage differentiation potential, differentiating into cells of the endoderm (liver, lung epithelium), mesoderm (bone, fat), and ectoderm (neural cells). They have a low immunogenic profile and possess potent immunosuppressive properties. Hence, hAECs may be a valuable source of cells for cell therapy. This unit describes an efficient and effective method of hAEC isolation, culture, and cryopreservation that is animal product-free and in accordance with current guidelines on preparation of cells for clinical use. Cells isolated using this method were characterized after 5 passages by analysis of karyotype, cell cycle distribution, and changes in telomere length. The differentiation potential of hAECs isolated using this animal product-free method was demonstrated by differentiation into lineages of the three primary germ layers and expression of lineage-specific markers analyzed by PCR, immunocytochemistry, and histology. Curr. Protoc. Stem Cell Biol. 13:1E.6.1-1E.6.25. C 2010 by John Wiley & Sons, Inc.Keywords: isolation r amniotic r amnion r epithelial r stem cells r cryopreservation r culture r characterization r placenta Recently, human amnion epithelial cells (hAECs) have attracted attention as a potential cell source for regenerative therapies (Parolini et al., 2008), with reports that these epithelial cells derived from human term amnion possess multipotent differentiation ability (Ilancheran et al., 2007), low immunogenicity (Bailo et al., 2004), and anti-inflammatory functions (Li et al., 2005). Importantly, while hAECs have similar