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Despite advances in insulin delivery systems and glucose monitoring, achieving tight glycemic control remains a challenge for many patients. In recent years, stem cell\u2013derived \u03b2-cell therapy has emerged as a promising strategy for restoring endogenous insulin production. This review explores the progress in differentiating human pluripotent stem cells, such as embryonic stem cells and induced pluripotent stem cells (iPSCs), into functional insulin-secreting \u03b2-like cells. We highlight recent breakthroughs in improving cell maturity, graft survival, and immune protection. Delivery approaches, encapsulation technologies, and transplantation strategies are discussed alongside an overview of ongoing clinical trials. The review also addresses current limitations, including immune rejection, cell dedifferentiation, and safety concerns. Finally, we examine future directions, such as genome editing, personalized cell therapy, and the integration of artificial intelligence in monitoring and optimizing treatment. 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