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Provided is a method for producing endocrine progenitor cells from pluripotent stem cells (PSCs), comprising steps of (a) incubating PSCs in culture medium comprising Wnt3a, Activin A, a TGF-β inhibitor, and KGF for 3-7 days, (b) exposing the cells resulting from step (a) to medium comprising retinoic acid (RA) for 2-3 days; and (c) culturing the cells resulting from step (b) in medium comprising RA, EGF, and KGF, thereby producing a culture comprising greater than 70% of PDX1+ NKX6.1+ endocrine progenitor cells. The method may further comprise steps of culturing the PDX1+ NKX6.1+ endocrine progenitor cells, thereby producing INS+ NKX6.1+GCG+ immature β-like cells, and then re-aggregating the immature β-like cells to produce mature functional βcells.