Neurological disorders, categorized by neuron loss, acute damage, or impaired function, include Parkinson's, Alzheimer's, stroke, and epilepsy. Mesenchymal stem cells (MSCs), with origins in mesoderm and ectoderm, offer therapeutic potential due to their multipotency and immunomodulatory properties. MSCs can differentiate into neuron-like cells, aiding in treating neurological injuries and diseases. Challenges include immunocompatibility, differentiation control, and avoiding tumor promotion. Advances in MSC therapy involve novel biomaterials and electromagnetic fields to enhance cell retention and survival, despite technical and societal challenges.