Objective: Many people over the world lose the hearing and turn deaf. One of the greatest challenges in the treatment of inner ear disorders is to find a cure for the hearing loss which is caused by the loss of inner ear cochlear hair cells or spiral ganglion neurons. So stem cell resources which are capable of differentiating into hair cells are necessary. Many studies aimed to differentiate stem cells to hair cell for example using embryonic stem cells and adult stem cells like neural stem cells. But using this type of stem cells have some problem for example embryonic stem cells have great potential to differentiate into hair cells, but they also have tumorigenic potential when transplanted or Neural stem cells do not differentiate to hair cells completely and not in a high amount. Rat olfactory mocusa contains stem cell population that can be cultured as a neurospheres and have multipotency to differentiate to different cell types. In this study we differentiated olfactory stem cells into functional inner ear hair cells.Materials and Methods: Rat olfactory epitheliums were isolated and cultured in proliferation medium after enzymatic digestion and cell isolation. To induce inner ear hair cells differentiation, the cells were cultured in differentiation medium after fifth passage. For characterization of the hair cells RT-PCR for three specific gene was done, include: Brn 3.1, Math 1, Myosin IIV, and immunocytochemistry assays were used for some specific markers such as: P27 (DCS-72, SPM 348), Myosin VIIa (C-5, A-16), MATH-1 (Y-23, N-19). Morphological properties were also considered.Results: Hair cells differentiation was confirmed by expression of multiple genes related to this type of cells by RT-PCR and also differentiation was assessed by immunoflorescence staining using specific antibodies. Hair cells were also confirmed by their morphologic characterization.Conclusion: Our results demonstrated that olfactory stem cells obtained from olfactory epithelium of rat has a differentiation potential to produce hair cells of inner ear in vitro therefore it can provide a potential source of autologous cells for transplantation.