KLF4 is a transcription factor that functions as both a transcriptional activator and repressor to regulate proliferation and differentiation of multiple cell types. The role of KLF4 in embryonic development suggested that it might be useful in the creation of stem cells that might be useful in cell replacement therapies in the treatment of several degenerative diseases. Artificial stem cells, termed induced pluripotent stem (iPS) cells, can be created by expressing KLF4 and the transcription factors POU5F1, Sox2, and Lin28 along with c-Myc in mouse fibroblasts. More recently, experiments have demonstrated that iPS cells could be generated using expression plasmids expressing KLF4, Sox2, POU5F1 and c-Myc, eliminating the need for virus introduction, thereby addressing a safety concern for potential use of iPS cells in regenerative medicine. KLF4 interacts directly with POU5F1 and Sox2 in iPS and ES cells and activates the target gene NANOG.