Regulation of multiple differentiation of stem cells, which is closely associated with bone formation, by Panax notoginseng saponins(PNS) is reviewed in this paper. Microwave, ultrasound, and supercritical fluid extraction methods are more effective than traditional extraction methods. PNS bears promising applications in inducing osteogenesis both in vitro and in vivo. PNS evidently promotes osteogenic differentiation and proliferation of bone marrow stromal stem cells in vitro and stimulates bone mineralization in vivo. In addition, PNS can promote bone remodeling by regulating bone morphogenetic protein, insulin-like growth factor, interleukin-6, and other cytokines. Moreover, PNS promotes themitogen-activation protein kinase, wingless-type virus mouse mammary tumor virus integration site family, nuclear factor-κB signaling, and other transduction pathways to regulate osteoclast differentiation, thereby promoting bone formation. Hydroxyapatite has potential applications in inducing osteogenesis as a PNS scaffold. PNS-coated hydroxyapatite can slowly release PNS at fixed concentrations in the region of bone defects to promote bone healing.