The severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2) outbreak in China's Hubei area in late 2019 has now created a global pandemic that has spread to over 150 countries. In most people, COVID-19 is a respiratory infection that produces fever, cough, and shortness of breath. Patients with severe Covid-19 may develop ARDS. MSCs can come from a number of places, such as bone marrow, umbilical cord, and adipose tissue. Because of their easy accessibility and low immunogenicity, MSCs were often used in animal and clinical research. In recent studies, MSCs have been shown to decrease inflammation, enhance lung permeability, improve microbial and alveolar fluid clearance, and accelerate lung epithelial and endothelial repair. Furthermore, MSC-based therapy has shown promising outcomes in preclinical studies and phase 1 clinical trials in sepsis and ARDS. In this paper, we posit the therapeutic strategies using MSC and dissect how and why MSC therapy is a potential treatment option for COVID-19-induced ARDS. We cite numerous promising clinical trials, elucidate the potential advantages of MSC therapy for Covid-19 ARDS patients, examine the detriments of this therapeutic strategy and suggest possibilities of subsequent research.