Umbilical cord-derived mesenchymal stem cells (UC-MSCs) are widely utilized and acceptable in regenerative medicine. The cells have more ethical acceptability, availability, and have robust biological activity. The cells demonstrate strong immunoregulatory effects. The immune cell responses are modulated and significantly reduce chronic inflammation. This is critical in degenerative and autoimmune conditions. UC-MSCs support tissue regeneration through paracrine signalling, trophic signaling and modulation of the microenvironment. The clinical acceptability of the UC-MSCs is more due to advancements in cell processing, cryopreservation, and quality control. Ongoing research continues to explore UC-MSCs in cell-based and cell-free therapies, positioning them as a key component of next-generation regenerative strategies.