Absorption and loss of alveolar bone are some of the main reasons of tooth loss. Therefore, clinics must understand how to reconstruct alveolar bone. To date, treatment strategies to rescue or regenerate the alveolar bone are limited. The process of developing biological alveolar bone formation in the early stage may help to understand the mechanism of bone regeneration and benefit clinical treatment. Alveolar bone is partially derived from dental follicle cells. Many growth factors and transcription factors are involved in the development of alveolar bone. In this review, the relationship between alveolar bone formation and many factors will be discussed in detail. This review also highlights recent advances in understanding alveolar bone development with and without varying factors.