Bryophytes, which include mosses, liverworts, and hornworts, have evolved a highly successful strategy for thriving in terrestrial environments, allowing them to occupy nearly every land ecosystem. Their success is due to a unique combination of biochemical adaptations, diverse structural forms, and specialized life cycle strategies. The key to their evolutionary success lies in their genomic diversity. To fully decode this diversity, the use of advanced genome engineering techniques is crucial. In this review, we explore the genomic diversity of bryophytes and the latest advancements in their genome studies and engineering, ranging from precise gene editing to whole-genome synthesis. Notably, the moss Physcomitrium patens stands out as the only land plant capable of efficiently utilizing homologous recombination for precise genome engineering. This capability has heralded a new era in plant synthetic genomics. By focusing on bryophytes, we emphasize the potential benefits of unraveling the genetic traits, which could have significant implications across various scientific fields, from fundamental biology to biotechnological applications.