Marrow stromal cells (MSCs) can differentiate into several mesenchymal lineages, MSCs were recently shown to form cartilage in micromass cultures with serum-free medium containing TGF-beta and dexamethasone, Here we found that addition of BMP-6 increased the weight of the pellets about 10-fold and they stained more extensively for proteoglycans, mRNAs for type II procollagen and type X collagen were detected at 1 week and the levels were increased at 3 weeks. We also compared two subpopulation of cultures of MSCs: Small and rapidly self-renewing cells (RS cells) and the large, more mature and slowly replicating cells (mMSCs). The cartilage pellets prepared from cultures enriched for RS cells were about 2.5-fold larger, stained more extensively for proteoglycans, and had levels of mRNA for type II procollagen that were 1.6-fold higher, Also, RS cells retained more of their chondrogenic potential as the cells were passaged.