Pharmaceutical compounding plays a pivotal role in the world of dermatology, enabling practitioners to tailor topical therapies to individual patient needs. This chapter outlines some foundational principles that help to identify circumstances in which compounding is best utilized. It guides the selection of topical preparations based on desired therapeutic effect; this includes considerations for appropriate base selection and a list of active pharmaceutical ingredients and their commonly requested strengths. It also aims to describe the inherently unique considerations involved in prescription writing and communication processes as it relates to compounding. Furthermore, this chapter discusses various compounding techniques, equipment, and nonactive ingredients (i.e., excipients). Of note, this chapter does not detail specific regulatory requirements as they differ significantly, regionally. As a result, practitioners must consult local regulations when compounding.