Muscular dystrophy (MD) refers to a group of more than 30 genetically and clinically heterogeneous disorders, characterized by progressive weakness and degeneration of the skeletal muscles that control movement. To date, MD is still incurable but increasing evidence suggests that stem cells might represent a therapeutic option in the future. This review will outline recent progress in this field involving the use of adult and embryonic stem cells. We will discuss in further detail the nature of these cells and their distinct biological properties which lead to their unique advantages and disadvantages in regard to therapeutic application.