Stem cell therapy shows promise for treating bladder dysfunction. Mesenchymal stem cells from sources like bone marrow, adipose tissue, and skeletal muscle have been used in experimental studies. The main mechanisms of action are migration of stem cells to the bladder, differentiation into bladder cells, and paracrine effects from growth factors secreted by stem cells. Studies have used various bladder dysfunction models including bladder outlet obstruction, ischemia, diabetes, spinal cord injury, and cryoinjury. Stem cell transplantation has led to improvements in bladder activity and function in these models based on urodynamic studies, though differentiation of stem cells into bladder cells is limited. Further research is still needed to advance stem cell therapy for bladder dysfunction.