Umbilical cord mesenchymal stem cells (UC-MSCs) show potential advantages over mesenchymal stem cells (MSCs) from other sources for regenerative medicine applications. UC-MSCs display higher proliferation rates and expression of embryonic genes compared to adult MSCs. Transcriptomic analyses indicate UC-MSCs express genes related to development of multiple tissues including bone, liver, cardiovascular and neural systems. While UC-MSCs can differentiate into cell types of multiple lineages, their therapeutic impact is thought to be mainly due to their paracrine effects and immunomodulatory properties. UC-MSCs could have advantages for treating autoimmune and neurodegenerative diseases.