Stem cells have been researched for decades for their ability to differentiate into different cell types. They can be divided into subtypes using the two criteria: potency, the ability of cells to differentiate into different phenotypic forms in accordance with the local microenvironment and the needs of the organism, and origin, i.e. the type of tissue from which they are isolated. The nervous system enables perception of the environment, response to stimuli, control of bodily functions, movement, learning and thinking, and consists of neurons, which conduct nerve impulses, and glial cells, which support the function of neurons. Pathological conditions affecting neurons are called neurodegeneration. It may lead to neurodegenerative disorders, which are characterized by a slow progression of the disease and an irreversible increase in the degree of dysfunction of neurons and synapses in certain parts of the nervous system. In the last few decades, neurodegenerative diseases have affected an increasing percentage of the population, which is why finding a permanent solution and quality therapy is of utmost importance. Stem cell therapy offers the potential to treat neural diseases and disorders such as Parkinson's disease, multiple sclerosis, Huntington's disease and Alzheimer's disease. Although the scientific community still faces many challenges and dilemmas, including ethical issues and potential side effects of therapies, treatment of disorders of the central nervous system with stem cells represents one of the most promising areas of modern medicine with the aim of improving the quality of life of patients and reducing the long-term consequences of neurodegeneration.