The unrealistic view as if stem cells may serve as a magic bullet to treat neurological disorders has long been substituted with the understanding that cell therapy should be tailored for each disease. The specific source and type of candidate cells for therapy, and their exact stage along the developmental pathway determine their therapeutic potential. These need to match the specific needs of each disease, considering also the timing and route of cell delivery. Here, we overview the prospects of cell therapy for neurological diseases, from both aspects of the candidate cells', and of the therapeutic needs of brain tissue. We focus on the regenerative, trophic, neuroprotective and immunomodulatory properties of various types of neural and non-neural stem cells, and how these can be beneficial to the brain.