Liver diseases are common in China. When the diseases progress to the end stage,liver transplantation has been considered as the most effective means of treatment. Whereas,due to the causes such as lack of donors,the treatment of acute-on-chronic liver failure has been restricted. While stem cells,especially the mesenchymal stem cells,can improve liver damage to a certain extent and have been adopted in clinical treatment. After years of studies,the mechanism of treatment has not been thoroughly clarified; due to the insufficient long-term clinical efficacy,there is also controversy on the clinical application. This article reviews related literature at home and abroad in recent years to discuss the mechanism related to the treatment of acute-on-chronic liver failure with mesenchymal stem cells and indicate the optimal clinical protocol.