Despite recent advances in diagnosis and treatment, colorectal cancer (CRC) remains one of the leading causes of cancer-related deaths due to therapy resistance. Traditional treatment methods for colon cancer include surgery, chemotherapy, and radiation therapy. However, due to the unspecific target of these strategies and the presence of therapy-resistant colon cancer stem cells in the tumor microenvironment, nearly 50% of patients exhibit tumor recurrence. Therefore, there is an urgent need for alternative methods, and targeted cell-based therapies are emerging as promising agents for the treatment of heterogeneous malignancies. In particular, mesenchymal stem cells (MSCs) have been widely investigated for their therapeutic potential in regenerative medicine due to unique biological features, including self-regeneration and differentiation potential, tumor homing capacity, and immunomodulatory and paracrine functions. However, the exact role of MSCs in cancer treatment remains controversial as they have been shown to be involved in tumor progression and inhibition at the preclinical level. This review summarizes current findings on the application of MSCbased therapy for colon cancer, with a focus on the mechanisms of action of MSCs as therapeutic agents, including paracrine action, the capacity of migration, and impact on the regulation of the human immune system. It also discusses strategies to improve MSCs therapeutic effectiveness through genetic engineering and potential risks that should be considered before clinical use.