Stem cells are known to have a paramount function in tissue regeneration and also the proliferation of cancer, and the ability that stem cells have to self renew allows them to differentiate and to regenerate injured tissues. More importantly, this capacity to self renew allows cancer stem cells to proliferate and promote cancer. Mesenchymal stem cells are multipotent cells that have the ability to differentiate into various cell types including; adipocytes, osteoblasts, and chondrocytes. These cells are known to regulate the healing of injuries and wounds and to activate cancer growth by secreting bioactive factors through paracrine signaling. Through scientific research, there is evidence that tissue specific and cancer stem cells also affect their surroundings through paracrine mechanisms, which would permit stem cells to facilitate wound recuperation and tumor proliferation, respectively. Because of this important connection, further investigation of the paracrine mechanisms by stem cells would ameliorate cancer treatment and cast light on the mechanisms of tissue regeneration.