This chapter summarizes the fetal stem cell transplantation and reviews the current status of fetal tissue engineering, along with other relevant information. Tissue engineering is almost universally hampered by certain predictable complications, namely vascularization and growth limitations, differentiation and function restraints, etc. A variety of sites, in addition to the fetus itself, can be sources of fetal cells in procurable amounts compatible with tissue engineering processing. At this time, proven viable sources have included the amniotic fluid, placenta, Wharton's jelly, and umbilical cord blood. Treatment of many congenital anomalies is hindered by the scarce availability of normal tissues or organs especially at birth. The ever present severe donor shortage that hampers practically all forms of transplantation is even more pronounced during the neonatal period. Fetal tissue engineering has emerged as a viable option to overcome these obstacles, posing a new alternative for the treatment of these anomalies.