Stem cell, an initial cell with unlimited proliferation potential and the ability to repair the damaged tissues and organs, is an important cell source with broad research values and potential clinical applications. Stem cell, its derived tissues and organs can be developed to a new therapeutic method or drug in the clinic. In the next 5 to 10 years, stem cell therapy will make a significant breakthrough upon the traditional medicine system. It will also promote the transformation of the modern pharmaceutical industry and create a huge emerging market. How to correctly understand the national policy for undertaking the stem cell clinical research and promoting the stem cell industry development must be concerned as the important topic. This article briefly introduce the stem cell concept and the current development situation, expounds the practice and effectiveness of Shanghai East Hospital in stem cell research in the recent years, and forecasts the future research of stem cell in there.