Diabetes is characterized by hyperglycemia resulting from insufficient insulin secretion or insulin resistance. Current management includes lifestyle changes, glucose monitoring, and anti-diabetic medications. Although conventional therapies help control blood sugar levels, they mainly manage symptoms and do not reverse pancreatic β-cell damage or fully resolve insulin resistance. Stem cell therapy has emerged as a promising alternative because of its regenerative potential. Unlike traditional approaches, stem cells aim to address the underlying mechanisms of the disease. However, clinical application remains limited by challenges such as poor cell survival and low homing efficiency. Stem cell-derived insulin-producing cells represent another strategy for generating functional β-cells for transplantation. Still, comprehensive in vivo studies, along with genomic and epigenetic evaluations, are necessary to confirm their safety and long-term efficacy. This book reviews the current status of cell-based therapies, highlighting their potential and the challenges in establishing solid evidence for their use in diabetes management.