Stem cells are undifferentiated cells that can differentiate into specialized cells and can self-renew. There are several types of stem cells including embryonic, adult, and fetal stem cells. Embryonic stem cells are the most versatile but also raise ethical issues, while adult stem cells are more limited in their differentiation potential. Stem cell therapy works by stem cells differentiating into the type of cells needed to repair damaged tissue when transplanted into the body. Current applications of stem cell therapy include treating diseases like cancer, diabetes, and Parkinson's disease.