Stem cell therapy is a promising treatment for neurogenerative disease as well as inflammatory and immune mediated diseases. Decades of preclinical research has demonstrated stem cell ability to differentiate into multiple cell lineages and be utilised in regeneration and repair with their immunomodulatory and immunosuppressive properties. This work has provided the fundamental scientific knowledge needed to launch various clinical trials studying stem cell therapy in autoimmune disorders, stroke, and other tissue injury. Despite the early success many of these promising therapies are yet to breakthrough into clinical use. In this review, we highlight the recent developments in the use of stem cells as therapeutic agents for neurological conditions as well as their failures and how the clinical translation can be improved.