Adult stem cells are undifferentiated cells found in adult tissues that are multipotent, meaning they can differentiate into a limited number of cell types. Stem cell sources include bone marrow, adipose tissue, and umbilical cord. Transdifferentiation is the conversion of stem cells from one lineage to another. Clinical applications of stem cells include hematopoietic reconstitution for blood disorders, regenerative medicine for conditions like bone and cardiac injuries, and gene and immunotherapy. Stem cells show promise for treating a variety of diseases and injuries.