Bone tissue engineering (BTE) aims to regenerate functional bone tissue using biomaterials, cells, and growth factors. The global incidence of bone disorders is rising, with a projected doubling by 2020, driven by aging, obesity, and reduced physical activity. Current bone grafts, such as autografts and allografts, have limitations including donor site morbidity, limited availability, immune rejection, and infection risks. BTE offers a potential alternative by combining biomaterials, cells, and growth factors to induce bone regeneration. However, challenges remain, including insufficient vascularization, limited osteoinductive properties, and the need for functional bone tissue engineering. BTE requires a biocompatible scaffold that mimics the natural bone extracellular matrix, osteogenic cells, morphogenic signals, and sufficient vascularization. Recent advances in BTE include osteoinductive materials like calcium phosphate-based biomaterials, hybrid materials such as co-polymers, polymer-polymer blends, and polymer-ceramic composites, and advanced hydrogels that support tissue regeneration. Immuno-modulatory biomaterials aim to modulate the immune system to enhance bone repair and regeneration. Biodegradable scaffolds with optimal mechanical properties, porosity, and nano-featured structures are critical for bone regeneration. Scaffold-induced cell homing strategies, such as using chemokines and mimetic peptides, enhance cell migration to defect sites. Engineering orthopaedic tissue interfaces involves creating multi-phase scaffolds that mimic native tissue structures. New scaffold fabrication techniques, including CAD/CAM systems, enable personalized and anatomically shaped bone grafts. Despite progress, challenges such as vascularization, osteoinduction, and integration of bone grafts with host tissue remain significant hurdles for BTE to become a clinical reality.Bone tissue engineering (BTE) aims to regenerate functional bone tissue using biomaterials, cells, and growth factors. The global incidence of bone disorders is rising, with a projected doubling by 2020, driven by aging, obesity, and reduced physical activity. Current bone grafts, such as autografts and allografts, have limitations including donor site morbidity, limited availability, immune rejection, and infection risks. BTE offers a potential alternative by combining biomaterials, cells, and growth factors to induce bone regeneration. However, challenges remain, including insufficient vascularization, limited osteoinductive properties, and the need for functional bone tissue engineering. BTE requires a biocompatible scaffold that mimics the natural bone extracellular matrix, osteogenic cells, morphogenic signals, and sufficient vascularization. Recent advances in BTE include osteoinductive materials like calcium phosphate-based biomaterials, hybrid materials such as co-polymers, polymer-polymer blends, and polymer-ceramic composites, and advanced hydrogels that support tissue regeneration. Immuno-modulatory biomaterials aim to modulate the immune system to enhance bone repair and regeneration. Biodegradable scaffolds with optimal mechanical properties, porosity, and nano-featured structures are critical for bone regeneration. Scaffold-induced cell homing strategies, such as using chemokines and mimetic peptides, enhance cell migration to defect sites. Engineering orthopaedic tissue interfaces involves creating multi-phase scaffolds that mimic native tissue structures. New scaffold fabrication techniques, including CAD/CAM systems, enable personalized and anatomically shaped bone grafts. Despite progress, challenges such as vascularization, osteoinduction, and integration of bone grafts with host tissue remain significant hurdles for BTE to become a clinical reality.