A stem cell is a cell that has not yet differentiated into a specialised cell.
There are embryonic stem cells which are fertilised eggcells that are yet to differentiate. These can differentiate into any type of cell.
There are adult stem cells in bone marrow, but they are not able to differentiate into any type of cell. They can only become blood cells.
Stem cells are used to cure disease and cancers, as the cells will adapt and duplicate into healthy versions of the infected cell, and eventually outnumber the infected cell.
Embryonic cells can be seen as unethical as they had potential to be human life, and may just be wasted or thrown away.