Bone marrow stromal cells(BMSCs) is a kind of adult stem cells which exists widely in human mesenchymal tissues and have active abilities of self-replication and multi-differentiation. When intervened individually or jointly by certain inducing agents and by the kind of genes, it can differentiate into specific lineage of cells in vitro and the capacity of multilineage differentiation and proliferation does not change. At the same time, with the unique immunological characteristics,it is an ideal seed cell for tissue engineering. In recent years, a lot of studies have proved that BMSCs can not only be induced and differentiate into nerve cells under certain conditions but have a certain structure and function of the nerve cells, which provide a new way in the treatment of nerve system diseases.This paper gives a review of studies on induced differentiation of BMSCs into nerve cells and the functions.