Abstract: Objective The mononuclear cells (MNCs) were cultivated and expanded into mesenchymal stem cells (MSCs) from human umbilical cord blood, and the purpose of this study was to explore the biological characteristics and induced differentiation ability in vitro. Methods Human umbilical cord blood samples were obtained sterilely with preservative-free heparin and the mononuclear cells were isolated from it, then plated the MNCs in 25-mm culture flasks containing DMEM/F12 medium. MSCs were obtained. The morphology was observed under microscope. Nissl body staining was used, The passage 2, 4, 7 of the expanded MSCs were induced to differentiate to neuron-like cells. The expressions of nestin and neuron-specific enolase (NSE) on the treated cells were detected by immunocytochemical method. Results Nissl body staining was positive; Nestin expression was found in (51.2±3.2) of the second, (34.6±2.7) of the fifth , (11.3±3.3) of the seventh passage of MSCs; NSE expression was found in (11.4±2.3) of the second, (21.78±3.1) of the fifth , (40.7±3.4) of the seventh passage of MSCs. Conclusion Cord blood MSCs possess some features of neural stem cells, and have the capacity to differentiate into neuron-like cells under proper conditions.