This study generated functional hepatocyte-like cells (iHep cells) from mouse fibroblasts by transducing them with three transcription factors - Gata4, Foxa3 and Hnf1a. The iHep cells exhibited epithelial morphology, expressed hepatic genes and markers, and displayed metabolic functions similar to hepatocytes. Transplanting iHep cells into a mouse model of liver failure partially rescued the mice and restored normal liver structure and function, without tumor formation. While not identical to hepatocytes, iHep cells represent a potential alternative cell source for modeling liver disease, transplantation and tissue engineering.