In this review, authors aimed to give information about the recent development about the use of stem cell transplantation in damaged nerverepair and highlight the key scientifi c studies. Although peripheral nerves show the potential of regenerating the axon and reinnervetingtheir target tissues, the recovery after intense nerve injury remains relatively poor. Schwann cells play important role in the regenerationsuccess of peripheral nerves. Given that Schwann cells of the denervated peripheral nerve appear to become incapable in regeneration, ithas been considered a reasonable approach to support the distal denervated nerve environment with exogenously derived host cells. Theeffects of various stem cells on peripheral nerve regeneration have been investigated. Skin, bone marrow and adipose derived stem cellswere indicated as the most promising candidates with their potentials of converting into Schwann cells. Beside the application of pluripotentinduced stem cell trials; recent studies have demonstrated that induced expression of growth factors in stem cells has more potential inregeneration. Although the stem cells were considered as effi cient resources and promising agents in nerve regeneration there is nooptimization of these therapies yet for their potential to be realized in a clinical setting.