Iron deficiency in children is associated with a number of neural defects including hypomyelination. It has been hypothesized by others that this hypomyelination is due to a failure in myelin production. Other possibilities include failure in the generation of oligodendrocytes from their precursor cells or an interruption in oligodendrocyte maturation. These hypotheses are based on the observations that there is a peak in brain iron uptake in vivo that coincides with the period of greatest myelination and that a shortage of iron leads to myelination deficiency. We now demonstrate that iron availability modulates the generation of oligodendrocytes from tripotential-glial restricted precursor (GRP) cells isolated from the embryonic day 13.5 rat spinal cord. In contrast, we found no effects of iron on oligodendrocyte maturation or survival in vitro, nor did we find that increasing iron availability above basal levels increases oligodendrocyte generation from bipotential oligodendrocyte-type-2 astrocyte/oligodendrocyte precursor cells (O-2A/OPCs). Our results raise the possibility that iron may affect oligodendrocyte development at stages during early embryogenesis rather than during later development.