Adipose derived mesenchymal stromal cells or adipose stem cells (ASCs) are undifferentiated progenitor cells residing in various locations of the fat tissue in the body. The increasing interest towards these adult stem cells relies on the ease of harvest in large quantities and the robust expansion rate that make them attractive sources of cells for regenerative medicine. These cells show phenotypic, differentiation and paracrine characteristics similar to adult mesenchymal stem cells (MSCs) isolated from bone marrow. These properties are shared by culture-expanded MSCs and ASCs. However, the phenotype as well as the migration potential of native and culture-expanded ASCs has been recently shown to differ. In the current review, we focus on the characterization of native ASCs, their functional properties and their relevance to adult stem cell-based regenerative medicine applications.