Stem cells, especially induced pluripotent stem cells (iPS cells), could differentiate into functional hepatocytes and avoid the ethical issues in the application of embryonic stem cells. Therefore, stem cells may serve as new seed cells for the replacement therapy for end-stage hepatic diseases. The experimental methods, research findings and clinical prospects of iPS cells in liver diseases are introduced in this paper, in hopes of providing references for the basic research and clinical practice of treatment of liver diseases.