Single or a group of somatic cells could give rise to the whole plant, which require hormones, or plant growth regulators. Although many studies have been done during past years, how hormones specify cell fate during in vitro organogenesis is still unknown. To uncover this mechanism, Arabidopsis somatic embryogenesis has been recognized as a model for studying in vitro plant organogenesis. In this paper, we showed that establishment of auxin gradients within embryonic callus is essential for inducing stem cell formation via PIN1 regulation. This study sheds new light on how hormone regulates stem cell formation during in vitro organogenesis.