The emergence of SARS-CoV-2 has led to a concerning global pandemic. The severity of COVID-19 symptoms may be enhanced due to underlying medical conditions. Several studies demonstrated severe COVID-19 infection can lead to innate and adaptive immune dysregulation, hypercytokinemia as well and the formation of fibro myxoid exudate in the respiratory alveolar, ultimately resulting in pulmonary fibrosis and ARDS as the leading cause of mortality and morbidity. Currently, there is a widespread global endeavor in finding efficient drugs or vaccines to manage COVID-19. Although some FDA-approved treatments have been introduced for COVID-19, alternative therapies might decrease the mortality rates. Various sources of stem cell-derived exosomes, pluripotent stem cells, and mesenchymal stem cells as cell-based therapies have been applied to moderate to severe COVID-19 patients with ARDS, leading to positive results. Cell-based therapies can probably inhibit tissue remodeling and subsequent end-organ damage by modulating the cytokine cascades and cellular apoptosis. The present review aims to discuss the advantages of stem cell-based therapies in the treatment of COVID-19 patients and the possible challenges associated with their application.