We describe a direct differentiation protocol that allows the generation of pTEPs from multiple iPSC lines. Upon transplantation into athymic nude mice, pTEPs further differentiate into functional pTECs that can facilitate the development of T cells. scRNAseq analysis of iPSC derived grafts shows characteristic thymic subpopulations and pTEC populations that are indistinguishable from TECs present in primary neonatal thymus tissue.