CARTILAGE has a poor regenerative potential with very low cell-density that contributes to its poor capability for self -repair. For this reason, autologous CARTILAGE grafts have been used in reconstructive surgery. Today; the rapidly emerging field of tissue engineering holds great promises for the generation of functional CARTILAGE tissue substitutes. The technique was initiated by harvesting CARTILAGE cells (chondrocytes) from a donor site such as the nasal septum or the auricle. However, in clinical use of human chondrocytes for tissue engineering, extensive expansion of cell numbers from a small donor site biopsy was required and this could limit the chondrogenic potential of cells after proliferation. Therefore, the ability of chondrocytes to replicate in- vitro allowed the expansion of cell numbers to produce theoretically limitless supplies of CARTILAGE autografts. Stem cell technology presents an alternative, immunoprivileged resource of cells with unlimited replicative capacity. These cells exist in a wide selection of tissues and provide the option of multi-lineage differentiation. This paper reviews the current evidence that stem cells may provide a superior cell resource for tissue engineered CARTILAGE and outlines the methodology for their isolation and chondrogenic induction.