Stem-cell therapy has the potential to improve vision in patients with untreatable retinal disease. Various types of cell source including fetal, embryonic and adult stem cells, intrinsic and extrinsic factors for differentiation into retinal progenitors and transplantation mode were discussed in this review. Experimental approaches have successfully induced photoreceptor precursor cells and retinal pigment epithelium. Stem-cell-based therapy is a promising treatment to restore vision in patients with retinal disease, in spite of the challenges.