Liver failure and liver diseases are major health problems worldwide leading to high mortality and also one of the high healthcare costs. Millions of patients die due to liver pathologies and liver diseases every year throughout the world. Use of stem cells to cure liver diseases has been proved beneficial in most of the conditions. Scientific literature reveals the role of stem cells in treatment and cure of various diseases like Liver Cirrhosis, End Stage liver Failure, genetic liver disease and also the Liver cancer. The stem cells possess the ability to renew and multiply by them or stem cells possess special characteristics of regenerating themselves. Because of their ability stem cells can differentiate into any tissue type, they have huge potential in various disease therapies and traumatic injuries. Stem cell therapy can be considered as an alternative to liver transplantation, as it has the immense potential in management of liver failure. Stem cell therapy can be mediated by either embryonic, induced pluripotent or adult stem cells or by promotion of endogenous regenerative processes with bone marrow-derived stem cells. Ethical issues and concerns make reduce the use of embryonic stem cells as a source to cure liver diseases when compared to adult stem cells.