Adipose stem cells (ASCs), a variety of mesenchymal stem cells (MSCs) are an essential element within bone tissue engineering (BTE). ASCs offer several advantages in isolation, culturing, maintenance, differentiation, repair, etc. Because of all these advantages of ASCs along with high paracrine activity, lacking major histocompatibility complex class II expression autologous ASCs are attracted towards treatment for organs damaged due to disease or injury and also in regenerative medicine. Bone is a very compound tissue and it takes part in various processes which include endocrine functions, hematopoiesis, mineral homeostasis and storage, body movement. Bone tissue engineering approaches involve combining cells and engineering materials with signaling molecules which is crucial for effective bone repair. ASCs are a vital element in BTE. BTE requires 3 important elements: (1) osteoprogenitor cells, (2) bioactive factors, (3) scaffold. In this review, we will be focusing on the recent discoveries which have employed the use of scaffolds, ASCs, bioactive factors in BTE. This review first outlined the advantages of ADCs in terms of isolation, culture, differentiation, etc. The different Growth factors involved in osteogenesis, which are the key segments in BTE. The available and recent innovations in the biological, mechanical, and structural necessities in the design of a profitable scaffold and their effects, which is succeeded by a summary of regular materials intended for scaffold fabrication were then briefed.