The worldwide increase trend in the prevalence of diabetes has highlighted the need for increased research efforts into treatment options for both the disease itself and its associated complications. Diabetes has been widely recognized as a major risk factor for cardiovascular diseases, such as coronary heart disease and hypertension. Diabetic cardiomyopathy (DCM) is a main complication of diabetes, contributing to specific forms of heart failure independent from ischemia or hypertension. Without considerably effective approaches, a dire need exists to further explore the mechanisms and potential therapeutic strategies to prevent or reverse the progression of DCM. In the past decades, stem cell-based therapies have held promises to various diseases including DCM. The aim of the present review was to summarize the current literature with regard to the pathological changes of diabetic cardiomyopathy, endogenous stem cells in diabetes, and the exogenous stem cells transplantation for DCM. If the best use is made of the advantages of stem cells and their mechanism of action is explicitly explored, stem cell-based therapies could served as an important tool for the prevention and treatment of DCM patients.