Stem cells are cells with unlimited proliferation and differentiation potential and have the function of regenerating various tissues and organs. Stem cells are widely found in early embryos, placenta and its appendages, bone marrow, peripheral blood and adult tissues. Neural stem cells are a class of cells that have the ability to divide and give rise to various neural tissues. Cerebral palsy is a syndrome of non-progressive brain damage and developmental defects beginning at conception and continuing through infancy. Theoretically, neural stem cells should be able to treat cerebral palsy, so some medical institutions have started to advertise neural stem cell treatment for cerebral palsy on the internet. But can stem cells really treat cerebral palsy at present? According to the information from the National Health Planning Commission (NHFPC), no hospital in China has yet been audited by the NHFPC for stem cell therapy, except for hematopoietic stem cell therapy for blood disorders. Why has stem cell therapy for cerebral palsy not been approved by health administration departments including the United States, Europe and China? It is because there are still big problems with the current neural stem cell therapy technology. Currently, the so-called “stem cell therapy for cerebral palsy” mostly uses intravenous infusion or lumbar puncture to introduce stem cells from outside the body, which poses the problem of whether these neural stem cells can accurately reach the damaged parts of the brain. Even if these neural stem cells are implanted in the damaged area, there is the question of whether these differentiated neural cells can survive in the long term and whether they can function as normal neural cells. In addition, it is a worldwide problem to obtain neural stem cells, and there is no recognized technology to isolate, purify and expand neural stem cells from umbilical cord blood. In other words, no one knows what is the best way to isolate, what is the best level of purification to use for transplantation, and what is the “qualified” level of the expanded stem cells. There is also a huge hidden danger that transplanted stem cells can cause cancer, which is internationally recognized. Due to the uncertainty and huge hidden danger of these stem cell transplants, the National Health Planning Commission has not yet approved any medical institution to carry out clinical treatment, stipulating that only research can be conducted, and that institutions conducting stem cell clinical research are not allowed to charge subjects for stem cell clinical research-related fees, or to publish or disguise the advertisement of stem cell clinical research. However, stem cell transplantation is a promising medical technology that will be able to cure many diseases, including cerebral palsy, once the above-mentioned defects are satisfactorily resolved. We look forward to the early arrival of this day.