In this study we were looking for infrequently dividing and label-retaining cells (LRCs), which allowed us to precisely localize and isolate new skin stem cells with slow-cycling and myoepithelial characteristics restricted to the proximal acinar part of sweat glands (SGs) with basal layer localization. In addition, these cells were not present in the SGs ductal distal region. We identified several Bone Morphogenetic Protein (BMP) pathway genes by transcriptional profiling, confirmed the functional requirement of BMP in SGs formation and demonstrated that SG LRCs possess multipotency and stem cells characteristic in vivo with potential to trans-differentiate into the epidermis during wound healing. In addition, our data also suggests plasticity of sweat glands cells to regenerate both sweat glands and hair follicle in vivo. Collectively, our data emphasize SGs are an alternative source of cells for wound healing with potential translational applications due to their ability to regenerate different skin components such as epidermis, sweat glands and hair follicles