Mesenchymal stem cells (MSCs) have become an important cell source for treatment of neurodegenerative conditions as well as in nerve repair strategies. Gaining a better understanding of how MSCs mediate neural repair will benefit the development of novel therapeutic strategies. Multipotent bone marrow-derived MSCs can be readily isolated due to their characteristic adherence to tissue culture polystyrene surfaces and have the ability to self-renew and can differentiate into various mesodermal lineages such as bone, cartilage, and fat cells. Importantly, bone marrow-MSCs are a potential candidate for autologous transplantation, thus avoiding an immune response in the host. Mesenchymal stem cells also display paracrine activity, secreting bioactive neuroprotective molecules. In addition to bone marrow, MSCs have been isolated from a variety of tissues such as fetal pancreas, liver, umbilical cord blood, scalp tissue, fetal thymus, adipose tissue, vermiform appendix, placenta, and endometrium. However, MSC isolation from bone marrow is a relatively common procedure and is clinically relevant.