Stem cell therapy represents a cutting-edge approach in diabetes management, focusing on regenerating or replacing damaged pancreatic beta cells to restore insulin production. Techniques include differentiating pluripotent stem cells into functional insulin-producing cells, transplanting pancreatic islets, and activating endogenous regenerative pathways. These strategies aim to reduce dependence on exogenous insulin and achieve better glycemic control. Current research addresses challenges such as immune rejection, long-term cell survival, and integration with host tissues. Combining stem cell therapy with immunomodulation and advanced delivery systems may enhance efficacy and safety, paving the way for regenerative solutions that could transform Type 1 diabetes care and offer durable metabolic benefits.