A vast number of studies indicate the presence of stem/progenitor cells virtually in all tissues in adult organs, particularly in bone marrow. Recent studies, however, cast doubt about the existence of true stem cells in adult tissue. The complex integrity of several cells with distinct morphologic and functional properties in the mature pancreas confers an appropriate status for stem cell research. Several different types of cells residing in the islets or in the ductal epithelium have been proposed as adult pancreatic stem cells or progenitor cells. However, these reports do not provide conceivable proof for the presence of true pancreatic stem cells. On the other hand, there is considerable evidence indicating transdifferentiation of all adult pancreatic cells into each other, and under proper conditions, to nonpancreatic cells including oncocytes and hepatocytes. Observations pertaining to the putative pancreatic stem cells, transdifferentiation ability of the differentiated mature pancreatic cells in the normal and diseased pancreas will be discussed, and our own findings supporting the transdifferentiation pathway are presented in this article.