For a study, researchers sought to treat paraffin-induced sclerosing lipogranuloma of the penis, providing a novel modified penile skin regeneration procedure. About 49 people got the treatment between 2017 and 2020. The affected penile skin from the lipogranuloma was completely removed. The next step was to make a subcutaneous tunnel connecting a horizontal scrotal incision to a proximal penile circumferential incision. A subcoronal and longitudinal dorsal penile suture line was created after the denuded penis was dragged into the tunnel. An inverted V-shaped incision was made on the ventral side of the penis, and it was then longitudinally closed. Retrospective research was done on the procedure’s results and complications. About 30 patients filled out a patient-reported questionnaire to determine the long-term impact of surgery on sexual function and general satisfaction. Complication rates were 26.5% overall. In 13 patients, postoperative complications of Clavien-Dindo grades 1, 2, 3a, 3b, 4, and 5 occurred 5, 0, 8, 1, and 0 times, respectively. According to the patient-reported questionnaire, surgery was successful for 27 (90%) of the patients. In 2, 3, and 1 patient, respectively, erectile dysfunction, pain or tension during erection, early ejaculation, and penile lymphedema were noted. Every patient noted sexual intercourse ability. Following the removal of the sclerosing lipogranuloma of the penis, there was debate concerning the type of regeneration of the penile skin. In patients with sclerosing lipogranuloma of the penis and intact scrotal skin, the rebuilding procedure described here is an effective single-stage therapy option with a high success rate.