Bone marrow-mesenchymal stem cells (MSCs) are considered to be an ideal source of stem cells for assessing the effects of environmental toxins on the proliferation, multipotency and differentiation of adult stem cells. The aim of this study was to investigate the effect of lead on the proliferation and neuronal differentiation of murine MSCs. MTT assay used in this study revealed that while the proliferation of MSCs is sensitive to higher than 10 microM lead, a 50% reduction in the rate of their proliferation can be achieved in the presence of 60 microM lead. The results of immunocytochemistry and RT-PCR showed that beta-mercaptoethanol induced-neuronal differentiation is also reduced after the treatment of MSCs by 60 microM lead. Furthermore, the comet assay analysis of MSCs showed a substantial increase in DNA damage in the lead treated cells compared to the control. In conclusion our results revealed for the first time that lead is not only cytotoxic to the survival and proliferation of MSCs but also inhibits their differentiation to neurons in a dose-dependant manner. Therefore, MSCs appear to be an alternative method for assessing the cytotoxic effects of such environmental hazards.