In this study, we tried to generate porcine induced pancreatic β-cells (piPan β-cells) from alpha 1,3 galactosyltransferase knockout (GalTKO) and membrane cofactor protein (MCP) knock-in porcine derived bone marrow mesenchymal stem cell (pBM-MSCs). GalT is involved in synthesis of Alpha-1,3-Galactose, which is main culprit of hyperacute rejection in xenotransplantation, while MCP is main part of complement system and protect host cells from damage. pBM-MSCs were induced with pancreatic differentiation media (bFGF, Activin A, retinoic acid), until maturation. pBM-MSCs attained definitive endoderm morphology after Activin A treatment and formed exact pancreatic clusters after 8 weeks in maintenance media. Dithizone staining showed moderate expression in piPan β-cells clusters, which confirmed the presence of zinc ion in the islet’s beta cells. After 8 weeks, pancreatic specific protein expressions were analyzed in piPan β-cells by immunofluorescence. Furthermore, to reveal the functional characteristics of piPan β-cells, glucose stimulating insulin secretion (GSIS) analysis were performed using low (2 mM) and high glucose (20 mM) concentration by real time PCR. The newly produced piPan β-cells exhibited higher expression of pancreatic markers (insulin, c-peptide, PDX1) as well as showed an elevation in insulin expression at both concentrations upon GSIS analysis. Morphological changes and expression of pancreatic markers revealed successfully differentiation of pBM-MSCs into piPan β-cells; however, more in depth studies for its functional characteristic and in vivo maintenance are still in progress. In conclusion; in near future, these induced piPan β-cells can be used to replace the beta cells in human diabetic patients with minimum risk of immune rejection.This work was supported by “Cooperative Research Program for Agriculture Science & Technology Development (PJ 01100203)” and 2018 RDA fellowship program of NIAS, RDA, Republic of Korea.