Reconstructing point sources in the Helmholtz equation from boundary or far-field measurements has many practical applications. There have been extensive studies on the reconstruction problem in homogeneous media and known inhomogeneous media. We study here the point source identification problem in an unknown inhomogeneous medium. We propose a two-step procedure to reconstruct both the medium and the point sources inside the medium with differential data. We present some stability results for the reconstruction as well as some numerical simulations with synthetic data. This is a joint work with Yimin Zhong.