It is well evident that the embryonic stem cells (ESCs) are pluripotent, can differentiate into all the three germ layers namely ectoderm, mesoderm and endoderm and into 200 odd cell types present in the body, are immortal, can expand in large numbers in vitro, and are genetically stable over long periods in culture. Three groups in the country have successfully derived well characterized human ES (hES) cell lines including Jawaharlal Nehru Centre for Advanced Scientific Research (JNCASR), Bengaluru1, Reliance Life Sciences2 and National Institute for Research in Reproductive Health (NIRRH)3, Mumbai. However, hES cells have the associated issues of immune-rejection and risk of teratoma formation. On the other hand, the adult stem cells (ASCs) do not expand in culture but these can be isolated from the patients’ own bone marrow and thus are considered safe. Though studies/trials have been undertaken using autologus stem cells in India4, at the global level this approach has not shown the desired results5,6,7. The National Guidelines for Stem Cells Research and Therapy became available in 2007, and has been recently revised (http://icmr.nic.in/guidelines/NGSCR%202013.pdf) and are named National Guidelines for Stem Cells Research indicating that stem cells are not yet ready for therapy and more research is required before these are put to translational use. Simultaneously, Central Drugs Standard Control Organization (CDSCO), New Delhi has put up a draft guidance document for regulatory approval of Stem Cell and Cell Based Products (SCCPs) (http://www.cdsco.nic.in). Several companies/clinics have started culturing and using mesenchymal stem cells (MSCs) for treating various conditions in India. The situation is alarming as it is not clear whether these therapies would benefit the public. Are mesenchymal cells true stem cells or just stromal cells? Similar situation exists with cord blood banking to treat multiple diseases and claims that cord blood may serve as a future health insurance for the baby. It has become evident that (i) besides blood related disorders, cord blood stem cells may not regenerate other tissues as these do not possess trans-differentiation potential, and (ii) autologus cryopreserved cord blood sample will never suffice when the baby grows up as an adult8. Use of fresh unrelated donor cord blood sample may be a viable alternative as emerging studies suggest that mismatched allogeneic cord blood stem cell transplant is easily tolerated with 1-2 antigen mismatch and is associated with lower anticipated risk of graft versus host disease (GVHD)9,10. Moreover, the present article suggests that pluripotent stem cells exist in adult body organs and the need to bank cord blood as a source of stem cells may be a futile exercise. The concerns raised in a recently published editorial11 are timely. More research is required to understand how normal body stem cells interact with their niche, differentiate and get mobilized under disease conditions to bring about regeneration. Such information is crucial to exploit therapeutic potential of stem cells in the field of regenerative medicine. Here the author discusses the existing confusion as to what are the true stem cells in the body, how these are different from the tissue-specific progenitors and whether these may be implicated in initiating cancers. It also provides an interesting perspective to the stem cell field based on available literature and highlights the importance of microenvironment/niche in deciding the stem cell fate.