Hair follicle stem cells (HFSCs) are recognized as multipotential stem cells with exceptional proliferative capacity. Their regulatory effect on skin homeostasis is orchestrated through intricate signaling pathways, including Wnt/β-catenin, transforming growth factor-β/bone morphogenetic protein (TGFβ/BMP), Notch, and Hedgehog. Concurrently, HFSCs inhabit the bulge region of the outer root sheath of the hair follicle (HF), serving as the epicenter for skin-organizing signaling during homeostasis, engaging in dynamic interactions with other functionally specialized niche cells. This comprehensive review delineates the nuanced interplay of both cell-intrinsic and cell-extrinsic mechanisms governing HFSCs within the skin. The aspiration is that this synthesis of knowledge will contribute meaningfully to the theoretical foundations underpinning further investigations into skin disorders.