The mesengenic multipotency of cryopreserved periosteum-derived progenitor cells (PDPCs) for chondrogenesis, osteogenesis and adipogenesis was investigated. Differentiation was verified using RT-PCR and histological analysis. For characterization, FACS analysis was performed with specific surface markers of mesenchymal stem cells (MSCs). Among PDPCs, unsorted periosteum-derived cells (PDCs) and dermal fibroblasts, the most distinct characteristics were found to be CD9, CD105, and CD166. In addition, these markers in PDPCs were continuously maintained until passage 15. We developed a rapid method for the isolation of PDPCs that can differentiate into mesodermal lineages and provide enough cells in a short period of time for allogeneic cell therapy.