Bone tissue engineering (BTE) has emerged as a promising approach for the regeneration and repair of bone defects caused by trauma, disease, or aging. This review provides an overview of recent advancements in BTE, with a focus on the development and application of biomaterial‐based scaffolds, including natural (e.g., collagen, chitosan), synthetic (e.g., polylactic acid [PLA], polycaprolactone [PCL]), and composite materials (e.g., hydroxyapatite‐based composites). It discusses their properties, benefits, and limitations. Additionally, this review examines innovative fabrication strategies such as 3D printing, electrospinning, and freeze‐drying, which enhance scaffold customization and performance. This review aims to provide insights into future directions of BTE research and its potential applications in regenerative medicine. Functionalization strategies, including surface modifications, coating, and the incorporation of growth factors and cells, are reviewed for their roles in improving scaffold bioactivity. In vivo and in vitro research have demonstrated the therapeutic promise of these scaffolds, while current clinical trials offer insights into their translational use. Challenges facing the translation of these technologies into clinical practice are also highlighted.