Green biotechnology employs fermentation and genetics to produce active ingredients and products that can be used in cosmetics and aesthetic medicines. These products are safe and green compared to synthetic products. The recent biotechnological advances have changed the formulation, manufacturing, and effectiveness of cosmetic products and aesthetic treatments, thus improving consumer satisfaction. Biotechnology uses genetically modified organisms, cell cultures, and biomimetic methodologies to create and formulate novel cosmetics and therapies. Active ingredients like enzymes, peptides, and growth factors are helpful for skin care, hair care, and other aesthetic applications. Green biotechnology has many more applications in formulating sustainable ingredients and effective and safer high-quality ingredients for cosmetics and aesthetics. Besides this, biotechnology can also help to improve the bioavailability, stability, and delivery methods of the product, resulting in more effective and focused therapies. The use of biotechnology has been expanded to stem cell, gene, and tissue engineering therapies. Moreover, these advancements have also improved skin rejuvenation, wrinkle reduction, and scar management in a more personalized way. However, despite all these positive applications, there is still a need for rigorous testing, ingredient transparency, and regulatory compliance to ensure the safety and efficacy of the product in this rapidly developing market. This work explains the development in the cosmetic and aesthetic industry in a more detailed and comprehensive way, which can help cosmetic scientists and dermatologists to understand the more recent developments and their potential applications.