The article provides a comprehensive review of bone tissue engineering (BTE), highlighting recent advances and challenges in the field. BTE aims to induce new functional bone regeneration using biomaterials, cells, and factor therapy. The review discusses the fundamentals of bone tissue engineering, including the importance of understanding bone structure, mechanics, and development. It also covers recent advancements in biomaterials, such as osteoinductive materials, hybrid materials, advanced hydrogels, and immuno-modulatory biomaterials. The mechanical integrity, porosity, and nano-featured properties of scaffolds are emphasized, along with their impact on cell behavior and bone regeneration. The article explores the role of scaffolds in guiding cell homing and the engineering of orthopaedic tissue interfaces. Finally, it discusses new fabrication techniques for personalized and anatomically shaped bone grafts, emphasizing the potential of hybrid systems that combine mechanical strength with osteoinductive properties. The challenges faced in BTE, such as vascularization and functional bone tissue engineering, are also addressed, underscoring the need for further research to overcome these obstacles.The article provides a comprehensive review of bone tissue engineering (BTE), highlighting recent advances and challenges in the field. BTE aims to induce new functional bone regeneration using biomaterials, cells, and factor therapy. The review discusses the fundamentals of bone tissue engineering, including the importance of understanding bone structure, mechanics, and development. It also covers recent advancements in biomaterials, such as osteoinductive materials, hybrid materials, advanced hydrogels, and immuno-modulatory biomaterials. The mechanical integrity, porosity, and nano-featured properties of scaffolds are emphasized, along with their impact on cell behavior and bone regeneration. The article explores the role of scaffolds in guiding cell homing and the engineering of orthopaedic tissue interfaces. Finally, it discusses new fabrication techniques for personalized and anatomically shaped bone grafts, emphasizing the potential of hybrid systems that combine mechanical strength with osteoinductive properties. The challenges faced in BTE, such as vascularization and functional bone tissue engineering, are also addressed, underscoring the need for further research to overcome these obstacles.