Stem cells are undifferentiated cells that can differentiate into specialized cell types. There are two main types: embryonic stem cells, which are pluripotent and derived from embryos, and adult stem cells, which are multipotent and found in adult tissues. Stem cells are valuable for research and potential therapies because they can generate specialized cell types to replace damaged or diseased cells. Recent developments include induced pluripotent stem cells, which are generated from adult cells but have properties similar to embryonic stem cells. Stem cell research faces challenges but holds promise for treating many diseases.