The skin performs a wide range of active metabolic functions including xenobiotic metabolism involving metabolizing enzymes specific to the skin. In this review we focus on the role of drug metabolism: (i) in allergic reactions to substances of low molecular weight; (ii) in cutaneous vitamin A and D3 metabolism and its modulation; (iii) in the interaction of transport and metabolic enzymes in skin cells; and (iv) on novel tools for the measurement of drug metabolism in various compartments of the human skin.