Stem cell research has emerged as a groundbreaking field with significant potential for advancing neuroregeneration and neurological disorder treatment. Neurological conditions such as Alzheimer's disease, Parkinson's disease, stroke, and spinal cord injuries pose severe challenges due to their impact on quality of life and the limited efficacy of current treatments, which primarily focus on symptom management rather than addressing the underlying damage. Neuroregeneration, the process of repairing and restoring damaged neural tissues, is crucial for improving patient outcomes, given the central nervous system's limited intrinsic repair capacity. Stem cells offer a promising solution due to their ability to self-renew and differentiate into various neural cell types, providing opportunities for innovative therapies. This review provides a comprehensive analysis of the role of stem cells in neuroregeneration, exploring different types of stem cells, including embryonic stem cells (ESCs), induced pluripotent stem cells (iPSCs), and adult stem cells, and their mechanisms of action in neural repair. It examines current clinical trials and translational research efforts, highlighting successes and ongoing challenges such as ethical considerations, immunogenicity, and technical limitations. The review also discusses future directions in stem cell research, including advancements in gene editing, tissue engineering, and personalized medicine. By addressing these aspects, the review aims to offer a thorough understanding of the potential and challenges of stem cell-based therapies, contributing to the development of effective treatments for neurological disorders and ultimately enhancing patient quality of life.