This review discusses the importance of sebaceous glands (SGs) in skin lubrication and barrier function, highlighting their loss in large skin defects and the lack of effective regeneration strategies. It introduces organoids as promising tools in regenerative medicine, detailing recent advancements in SG organoid development that replicate in vivo characteristics. The review emphasizes the potential of engineering approaches to enhance SG organoid functionality, aiming to create vascularized, innervated, immune-interactive, and lipogenic SG organoids. Ultimately, it anticipates that these advancements will not only improve understanding of SG biology and regeneration but also facilitate their clinical application.