The research in stem cells gives a proper information about basic mechanisms of human development and differentiation. The use of stem cells in new medicinal therapies includes treatment of different conditions such as spinal cord injury, diabetes mellitus, Parkinsonism, and cardiac disorders. These cells exhibit two unique properties: self-renewal and differentiation. The major stem cells been used for approximately about 10–14 years for cellular therapy are mesenchymal stem cells. Mesenchymal stem cells can individualize into many lineage, i.e. into both mesenchymal and non-mesenchymal lineage, such as into osteoblasts, chondrocytes, myocytes, adipocytes, neurons, etc. This review focuses on the history, types of stem cells and their targets and mechanisms of mesenchymal stem cells. Mesenchymal stem cells are the significant futuristic carrier for treating diseases associated not only with regeneration but also immunomodulation.