Alzheimer's disease (AD) is a devastating neurodegenerative disorder marked by cognitive decline, neuronal loss, and the accumulation of amyloid plaques and tau tangles. Despite decades of research, effective treatments remain limited, primarily addressing symptoms without halting disease progression. Stem cell engineering offers a novel therapeutic approach with the potential to repair damaged neurons, modulate the immune response, and clear toxic protein aggregates. This review explores advances in the use of stem cells for developing disease-modifying treatments for AD. In this paper, the challenges and barriers to stem cell engineering for AD have been discussed despite the encouraging results from the preclinical and early clinical studies. With continued research and refinement, stem cell engineering holds significant promise for transforming AD treatment. However, further studies are needed to optimize delivery methods, mitigate risks, and fully unlock the potential of this innovative approach. The future of Alzheimer's therapy may lie not only in managing symptoms but also in repairing the brain itself through advanced stem cell technologies.