Photodynamic Therapy (PDT) offers an innovative approach to scar prevention and treatment. It has proven effective in preventing scarring in the management of superficial skin cancers and several inflammatory dermatoses, conditions that traditionally resulted in scarring through surgical interventions or inflammation. PDT provides a non-invasive alternative, enabling lesion resolution without subsequent scarring. Furthermore, PDT also demonstrates significant efficacy in treating hypertrophic scars and keloids, emphasizing its potential as an innovative scar management method. Its mechanism of action involves the generation of reactive oxygen species (ROS) during photodynamic reactions. ROS causes damage to cellular membranes and mitochondria, activating crucial signaling molecules and leading to cellular apoptosis. These molecular changes modulate the expression of growth factors and cytokines, influencing collagen production and extracellular matrix organization. However, PDT's clinical utility can be constrained by its limited penetration depth, especially in the case of deep keloids. Some approaches, such as combining surgery, microneedles, and CO2 laser with PDT, show the potential to overcome these limitations. The ease of operation and on-demand availability of PDT represent significant advantages in the prevention and treatment of scars. While PDT demonstrates significant promise in managing scars, continued research, especially in the areas of long-term effects and broader case studies, remains essential. Additionally, the development of improved drug formulations and delivery methods is critical to fully realize PDT's potential effectiveness.