Abstract  The vanilloid transient receptor potential channel TRPV3 differs in several aspects from other members of the TRPV subfamily. This Ca2+‐, ATP‐ and calmodulin‐regulated channel constitutes a target for many natural compounds and has a unique expression pattern as the most prominent and important TRP channel in keratinocytes of the skin. Although TRPV3 is considered as a thermosensitive channel, its function as a thermosensor in the skin is challenged. Nevertheless, it plays important roles in other skin functions such as cutaneous sensations, hair development and barrier function. More recently, mutations in TRPV3 were linked with a rare genodermatosis known as the Olmsted syndrome. This review gives an overview on properties of TRPV3 and its functions in the skin and skin diseases.