This article analyzes the ethical issues raised by embryonic stem cell research and recent recommendations by the National Bioethics Advisory Commission (NBAC) regarding federal support for this research. The authors identify the key ethical issue as the moral significance that should be granted to early embryos and discuss arguments supporting the diverse answers to that question and the implications each view has on the formulation of rules and policies for stem cell research. The authors conclude that several of NBAC's recommendations regarding the derivation of stem cells from embryos for research are ethically justifiable and sound public policy.