Stem cells are the cells that have the ability to regenerate themselves and are able to differentiate into one or more specialized cell types. This unique property makes them a valuable source for in vitro disease modeling, drug designing, regenerative medicine and tissue engineering. As no specie can fully mimic the human microenvironment, human cell models derived from patients cells provide a fascinating avenue for enhancing our current understanding of the early molecular stages of various diseases followed by validating therapeutics. In this paper, we reviewed the role of stem cells in regenerative medicine that includes use of cord blood derived stem cells in medicine and patient specific induced pluripotent stem cells for future transplant purposes and the hurdles and obstacles that we need to address before we can safely use these cells for patient cure.