Melanocytes, specialized cells responsible for melanin production, originate from neural crest stem cells (NCSCs) during embryonic development. These NCSCs differentiate into melanoblasts, which migrate to the skin, hair follicles, and eyes. Melanocyte development is regulated by key signaling pathways and transcription factors such as Wnt, MITF, Sox10, and Kit, which control their proliferation, migration, and melanin production. Melanogenesis occurs in melanosomes—lysosome-related organelles—through four maturation stages. The produced melanin is transferred to keratinocytes via mechanisms like exocytosis and cytophagocytosis, crucial for skin pigmentation and UV protection. Melanocyte–keratinocyte interactions are tightly regulated to maintain skin homeostasis. With aging, melanocyte numbers decrease, leading to reduced pigmentation. Disruptions in melanocyte function or signaling can result in pigmentation disorders or contribute to melanoma development. Understanding melanocyte biology provides insights into normal pigmentation and related diseases.