Cavernous nerve injury-induced erectile dysfunction (CNIED) is a common complication of prostate cancer surgery or other pelvic surgery, and it can have a negative impact on the patient’s prognosis and quality of life. Traditional treatments can improve the pathological state to a certain extent, but the efficacy is limited. Stem cells have attracted considerable attention for their regenerative potential, and the effectiveness of stem cell therapy in the treatment of CNIED has been evaluated in various preclinical models. Phase Ⅰ/Ⅱ clinical trials targeting adipose-derived stem cells and bone marrow mesenchymal stem cells are ongoing. However, the long-term efficacy of stem cell therapy is still a question that needs to be considered. This article reviews the current research status of stem cell therapy for CNIED and summarizes and discusses strategies to enhance the efficacy of stem cell therapy.