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Provided is a method for producing pancreatic β cells, comprising steps of; (a) producing posterior foregut (PFG) cells by culturing primitive gut tube (PGT) cells derived from pluripotent stem cells, in the presence of a protein kinase C (PKC) activator, (b)producing pancreatic precursor (PP) cells from PFG by culturing in the presence of retinoic acid or an analog thereof, (c) producing pancreatic endocrine precursor (EP) cells from PP by culturing in the presence of a Notch signal inhibitor and a ROCK signal inhibitor (or in a medium containing nicotinamide), and (d) producing pancreatic β cells from EP by culturing in the presence of an insulin receptor signal activator, transferrin, and selenious acid.