Introduction-Since past whenever delivery of a baby occurred, umbilical cord and placenta are thrown out because health workers thought that umbilical cord and placenta is a waste product. But now a days scientist are well known importance of Umbilical cord blood and cells, as most potent and much more number of stem cells are found in Umbilical cord blood and tissue. Stem cell have capability to create and heal our body. Aim-This review will focus on Umbilical cord derived stem cells and compare those with adult bone marrow derived mesenchymal stem cells. So that peoples understand importance of Umbilical cord blood and tissue and became aware to donating Umbilical cord blood, which is a precious gift for critically ill patient. Conclusion -Umbilical cord derived stem cells are readily available and inexpensive source of cells that are capable of forming different types of cells (i.e. pluripotent, Multi-potent) which have ability to create and heal our organs, blood, immune system.