Chronic obstructive pulmonary disease (COPD) is a leading cause of morbidity and mortality worldwide. The progression of the disease is primarily driven by chronic inflammation and structural damage to lung tissues, which leads to significant airflow obstruction. Various cell-based therapies, particularly mesenchymal stem cells (MSCs), have been explored for COPD treatment. MSCs derived from bone marrow, adipose tissue, and umbilical cord tissues possess regenerative and immunomodulatory properties, promoting lung tissue repair and restoring lung function. While preclinical studies have shown promising potential in reversing some aspects of COPD pathology, clinical trials have produced mixed results. Significant improvements in patients’ quality of life have been observed, but the effects on lung function remain marginal. Current challenges, including cell delivery methods, dosage optimization, and variable patient responses, call for further investigation. To successfully translate these therapies into clinical practice, larger and well-designed clinical studies are essential to refine and standardize treatment protocols. In addition, comprehensive research into the safety and efficacy of stem cell therapies across diverse patient populations is needed. Such advancements could open new therapeutic avenues for COPD, potentially reversing lung damage and improving patient outcomes.