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Provided is a method for obtaining a three-dimensional multilayered skin composition comprising steps of (a) culturing human pluripotent stem cell aggregates in a culture medium comprising BMP4 and a TGFβinhibitor for about 8 to 10 days; whereby non-neural epithelium forms within the aggregates, (b) embedding the cultured aggregates of (a) in a porous substrate comprising extracellular matrix components, and (c) culturing the embedded aggregates of (b) for at least about 25 to 120 days under conditions that promote self-assembly of cells within the embedded aggregates into three-dimensional, multilayered composition comprising an epidermal layer, a dermal layer, and a plurality of cells capable of forming a functional hair follicle.