PACAP is a neuropeptide with a multitude of functions on different cell types and organs including brain tissue. PACAP is relatively highly expressed in embryonic brain indicating a role in neuronal development. Particularly PACAP is expressed in the subventricular zone of lateral ventricles and in the dentate gyrus of hippocampus harboring the neural stem/progenitor cells (NPCs) that give rise to new neurons and glial cells in the developing brain. PACAP is known to stimulate the PACAP-1 receptors (PAC1R) that are expressed by the progenitor and other cells in the brain. Here we will shortly discuss the current view about the role of PACAP in NPCs and how PACAP affects cell proliferation, differentiation, specification, migration and survival of these cells as have been studied mainly in rodent brain. Available data suggests that PACAP acts in concert with other peptides, growth factors and other signaling molecules in governing the behavior of the NPCs both during development and in the adult brain. A better understanding about the action of PACAP in stem cells and its interactions with other factors will be helpful for the potential use of PACAP in treatment of different brain disorders and for understanding of neural repair mechanisms.