Background: CD34 is a transmembrane phosphoglycoprotein and a marker of hematopoietic and nonhematopoietic stem/progenitor cells. In experimental studies, CD34+ cells are rich sources of endothelial progenitor cells and can promote neovascularization and endothelial repair. The potential role of CD34+ cells in stroke patients remains unclear. Aims: We aimed to assess the prognostic effect of circulating CD34+ cell levels on the risk of vascular events and functional prognosis in stroke patients. Patients and Methods: In this prospective observational study, patients with ischemic stroke were consecutively enrolled within 1 week of onset and followed up for 1 year. Patients were divided into three groups according to tertiles of the level of circulating CD34+ cells (tertile 1, <0.51 /µL; tertile 2, 0.51–0.96 /µL; and tertile 3, >0.96 /µL). The primary outcome was a composite of major adverse cardiovascular events (MACEs), including nonfatal stroke, nonfatal acute coronary syndrome, and vascular death. The secondary outcomes included the modified Rankin scale (mRS) scores. Results: A total of 524 patients (mean age, 71.3 years; male, 60.1%) were included. High CD34+ cell levels were associated with younger age (p<0.001) and low National Institutes of Health Stroke Scale scores at admission (p=0.010). No significant differences were found in the risk of MACEs among the three groups (annual rates: 15.0%, 13.4%, and 12.6% in tertiles 1, 2, and 3, respectively; log-rank p=0.70). However, there were significant differences in the mRS scores at 3 months (median [interquartile range]; 2 [1–4], 1 [1–3], and 1 [0–2] in tertiles 1, 2, and 3, respectively; p=0.010) and 1 year (3 [1–4], 2 [1–4], and 1 [0–3]; p<0.001) among these groups. After multivariable adjustments, a higher CD34+ cell level was independently associated with good functional outcomes (mRS score of 0–2) at 3 months (adjusted odds ratio [OR], 1.43; 95% confidence interval [CI], 1.01–2.05) and 1 year (adjusted OR, 1.53; 95% CI, 1.09–2.16). Conclusions: Although no correlations were found between circulating CD34+ cell levels and vascular event risk, elevated CD34+ cell levels were associated with favorable functional recovery in stroke patients.