Current treatments of neurological disorders such as Parkinson's disease and stroke are only partially effective. Consequently new therapies such as cell transplantation are of great interest. Cell therapy has shown promising results in animal models and in limited clinical trials. This form of treatment does have its own concerns, such as what factors control the survival and/or migration of the transplanted cells and how do they exert their benefit. Recent studies on tracking the transplants, such as prelabeling of the cells prior to transplant, and those elucidating the role of chemokines, as well as microglial and inflammatory responses, that may initiate the movement and survival of these cells are discussed in this review. A better understanding of these mechanism-driven pathways of neural repair will facilitate the clinical application of cell therapy for neurological disorders.