Background Induced Pluripotent Stem Cells (IPSCs) have the capability to differentiate into any kind of cell types, such as Neuronal Progenitor Cells (NPCs), and then to mature neurons. By this new approach we can investigate neuronal differentiation processes or the role of specific genes using genome editing techniques (e.g., ZFN, TALEN, or CRISPR). For example, the neuron-specific roles of the disrupted in schizophrenia 1 (DISC1) can be studied in a simple, Petri-dish based model. The DISC1gene has been intensively studied over the last decades after the description of a balanced translocation of t(1;11)(q42.1;q14.3) in a multigenerational Scottish family with several cases of psychosis and affective disorders, followed by the identification of a frameshift DISC1 mutation in an American family affected with schizophrenia. Previous molecular biological experiments have shown that DISC1 scaffold protein can affect neuronal proliferation and migration, and synapse maintenance. Animal model findings also pointed to its role in hippocampal neurogenesis, which is a crucial neuronal mechanism affected in several psychiatric disorders. Methods We aimed to characterize the possible roles of DISC1 in vitro neuronal cell culture. We applied an isogenic IPSC line in a model of hippocampal dentate gyrus neurogenesis, given that impaired hippocampal neurogenesis has been implicated in the pathogenesis of both schizophrenia and affective disorders. IPSC line XCL1 was engineered using zinc finger nuclease technology to produce an isogenic DISC1 exon-2 biallelic knockout cell line (XCL1 DISC1 exon-2 KO/KO). The locus of the genetic engineering was selected because of the frameshift mutation. The isogenic IPSC pair was characterized in terms of pluripotency and spontaneous differentiation potential. Following this, IPSC lines were differentiated into neuronal lineages using established protocols to generate hippocampal dentate gyrus granule cells. The dentate gyrus protocol is founded on dual SMAD inhibition, Wnt- and SHH inhibition, after generating free-floated embryoid bodies from pluripotent stem cells, which results in forebrain NPCs. Results We have successfully derived and characterized NPCs and then matured neurons from human IPSC XCL1 and deletion pair, which were differentiated according to the DG PROX1 protocol. There was no significant difference at the spontaneous differentiation potential between the isogenic IPSC XCL1 lines. The immunofluorescence staining showed that NPCs express Nestin and Sox2. This intermediate cell type can be further differentiated into PROX1 and MAP2 positive functional neurons which have dendritic spines. Till now we have not found significant differences between wild type and knock out cell lines based on induced outgrowth measurement and structure of ICC. We have found some alteration in Ca-dynamics between the two cell lines, however these measurements need further investigation. Discussion The generated neuronal progenitor cells and mature neurons carrying biallelic knockout of the DISC1 gene were amenable for assays comparing the isogenic pairs by immunofluorescence microscopy, and transcriptomics. Functional studies, such as calcium-imaging assays, single cell patch-clamp electrophysiology and real-time live cell visualization of induced neurite outgrowth are under way to further. These investigations may help to explore the role of DISC1 in hippocampal neurogenesis and the etiology of psychiatric disorders.