Osteonecrosis of the femoral head (ONFH) is a common and frequently occurring disease. With various different etiologies, interruption of blood supply is observed in patients with ONFH. This disease leads to degeneration and necrosis of the subchondral bone of the femoral head and eventually collapse of the femoral head. Of note, ONFH has a high disability rate, seriously affecting the quality of living of patients; and this often involves middle-aged and younger people. However, effective treatments of ONFH are still challenging in clinics. In recent years, new technology has been developing rapidly for understanding of stem cells and regenerative medicine. Many studies have reported successful results in the treatment of ONFH by using stem cell transplantation. Thus, stem cell transplantation is foreseen to serve as a new approach in the treatment of ONFH. This review will summarize results obtained from recent human and animal studies with respect to pathophysiological process of ONFH, current techniques and outcomes utilizing stem cells in the treatment of ONFH with pharmacological aspects. Overall, current evidence reveals the promising treatment of ONFH using stem cell technology. Nonetheless, additional in-depth studies are necessary to better explore application of this technology and appreciate more ideal ways to overcome difficulties interrelated with stem cells.