Age-related macular degeneration (AMD) is a leading cause of irreversible vision loss worldwide, affecting a significant proportion of the aging population. While wet AMD can be treated with anti-vascular endothelial growth factor injections, there is very little that can be offered to patients with dry AMD. This paper provides a review of AMD pathogenesis, current treatment methods for dry AMD, and the potential of cell-based therapies, particularly in the context of retinal pigment epithelium (RPE) replacement. AMD pathogenesis involves the formation of drusen impacting the health of the RPE. Aging, smoking, and genetic factors contribute to RPE dysfunction, leading to the progression of AMD. Newer therapies for dry AMD, including pegcetacoplan and avacincaptad pegol, mainly focus on reducing ongoing inflammation and addressing issues with complement regulation. This review discusses the emerging field of RPE replacement therapies, emphasizing the potential of induced pluripotent stem cells. Clinical trials involving RPE replacement therapy are discussed, showcasing ongoing efforts to develop effective treatments for dry AMD. While challenges, including immune rejection and integration issues, have to be solved, the potential benefits of RPE transplantation, either as cell suspensions or patches, remain significant. In conclusion, this paper highlights the promising prospects and challenges related to stem cell science in treating dry AMD, potentially marking a significant breakthrough in managing a previously untreatable disease.