<p>The escalating diabetes prevalence has heightened interest in innovative therapeutic strategies for this disease and its complications. Human amniotic epithelial stem cells (HAESCs), originate from the innermost layer of the placenta closest to the fetus and express stem cell markers in the amniotic membrane’s umbilical cord attachment area, which have garnered significant attention. This article critically examines emerging research advancements and potential application values of hAESCs in treating diabetes and its complications. Initially, we will discuss the characteristics, origin, and advantages of hAESCs in differentiating into insulin-secreting cells. Subsequently, we will focus on the potential applications of hAESCs in treating diabetes complications such as diabetic retinopathy, diabetic nephropathy, and diabetic neuropathy, etc. We will scrutinize the progress of relevant clinical studies and trials involving hAESC therapy. In conclusion, as an emerging diabetes treatment method, hAESCs exhibit immense potential and application value. Despite numerous challenges in practical application, we are confident that with scientific advancement and technological progress, hAESCs will play a pivotal role in treating diabetes and its related complications.</p>