Stem cell therapy has been studied and developed as a revolutionary strategy in orthopedic surgery by providing innovative solutions for the repair of cartilage, bone, spine, tendons, and ligaments. It also holds significant promise for enhancing the understanding of the normal mechanisms of tissue regeneration, thereby enabling the development of more effective cell-based therapies. The chapter commences with the definition of stem cells and an overview of their progression through history. Based on the developmental stages and differentiation potential, stem cells can be classified into various groups and types. Furthermore, advancements of stem cell therapy in orthopedics are discussed with a focus on clinical applications such as cartilage repair and bone regeneration. Despite the promising prospects of stem cell therapies, their research and clinical use are still accompanied by some challenges and ethical considerations. The emergence of induced pluripotent stem cells could address current challenges and limitations in stem cell therapy.