Induced pluripotent stem cells (iPSCs) have been presented as a more ethical alternative to human embryonic stem cells (hESCs), which are surrounded by a significant ethical controversy. This article discusses some potential promises and perils of iPSCs for regenerative medicine. It also presents some ethical perspectives regarding the hypothetical use of iPSCs in reproductive applications. In particular, this article analyses whether iPSCs are a less problematic alternative to hESCs from an ethical viewpoint. In order to shed some light on this multidimensional question, the prospects of iPSCs for regenerative medicine will be discussed in light of the current scientific knowledge. In addition, paradoxical linkages between iPSC and hESC technologies will be analysed from a bioethical perspective. Finally, legal and ethical patentability considerations affecting the commercialization prospects of different pluripotent stem cell-based products will be discussed.