A stem cell is a cell capable of dividing, leading thereby to the production of a copy of itself as well as a differentiated cell progeny, that’s characterized by having different, more restricted properties. Stem cells have been recognized as a potential tool for the development of innovative therapeutic strategies. Regenerative medicine is a new branch in medicine involving a multidisciplinary effort to replace or repair diseased tissue. Stem cell therapy is playing a crucial part in this new field.The liver is a remarkable organ in both form and function. The liver is responsible for a number of biochemical functions, essential for man’s survival. Hence, the need for effective modes of therapy is crucial. Liver-directed cell therapy is of much interest for several reasons. Firstly, most genetic diseases are amenable to cell therapy. Secondly, a large numbers of people carry the burden of acquired liver disease, such as, chronic viral hepatitis, if some how it is concomitant with an effective mode of disease eradication, it will be a breakthrough. Thirdly, all terminal liver disease patients will benefit by improving their quality of life. Finally, there are many sources of liver stem cells that can be researched and used. Stem cell therapy in liver diseases is starting now to show great results in human trials; however it’s still too early to standardize the approach and further studies especially well designed randomized controlled studies are still needed to prove the effectiveness of stem cell administration on the clinical course of these patients.