Type 1 diabetes is the most common chronic disease in children for which there is no cure. At the onset of type 1 diabetes, there is a gradual cell death of the insulin-producing cells due to an immune attack, causing patients to lose all insulin production and become dependent on insulin injections. Insulin treatment is far from being able to mimic normal insulin production and individuals are at risk of developing a number of late complications of their disease such as blindness, kidney failure, heart attack, stroke and premature death. Previous studies have shown that specific cells in bone marrow, mesenchymal stem cells, can have powerful immunomodulatory properties, including preventing organ rejection after transplantation. These cells have also been shown in animal models of type 1 diabetes to prevent the onset of the disease. This research project aims to investigate whether the remaining insulin-producing cells can be rescued by transplantation with autologous mesenchymal stem cells in new-onset patients with type 1 diabetes, who have 20-40% remaining insulin production. In a Phase I/IIa study, we have seen maintained or increased insulin production in treated patients and no side effects. Through the use of autologous cells, no immunosuppressive drugs are needed. The successful development of a curative treatment for type 1 diabetes would be expected to have a major impact on society and especially the individual.