While exogenous insulin and oral hypoglycemic agents are helpful in controlling the blood glucose level in diabetic patients, these agents are occasionally resulted in hypoglycemic coma. Considering the epidemiology of the diabetic population in the world, we require a better therapeutic strategy like expanding the existing beta-cells within the body or by supplying exogenous insulin-producing stem cells. A variety of stem cells have been tested for the treatment of type 1 and type 2 diabetes mellitus, and among them, mesenchymal stem cells (MSCs) are widely used because of their immunomodulatory and low-immunogenic characteristics. So far, eight clinical trials have been completed using MSCs for the treatment of diabetes mellitus. Although the results of the currently available clinical trials are encouraging, i.e. in improving function of the pancreatic beta cells and in controlling the complications associated with diabetes, we require larger, randomized, and double-blinded studies, with a longer duration of follow-up, to validate the findings obtained.