Abstract: The present invention relates generally to the generation of cells of mesodermal lineage. More particularly, the present invention contemplates a method for the preparation of differentiated or partially differentiated mesodermal cells and their use in tissue repair, regeneration and/or augmentation therapy. The identification and generation of the mesodermal cells further provides a source of transcriptome or proteome data to assess the expression profile of genes associated with the maintenance of mesodermal cells as well as their differentiation, proliferation, expansion and/or renewal potential.