Polycomb-repressive complex 1 (PRC1) and PRC2 are critical chromatin regulators of gene expression. Here, we show that despite extensive genomic co-binding, PRC1 is essential for epidermal tissue development, whereas PRC2 is dispensable. Loss of PRC1 resulted in impaired stem cell specification, arrested epidermal development, and blistering skin reminiscent of human skin fragility syndromes. Epigenetic and transcriptional profiling demonstrated that, despite well-established repressor function, PRC1 binds to both silent and active genes in epidermal stem cells. Molecular dissection demonstrated that PRC1 functions with PRC2 to silence/dampen expression of non-epidermal lineage genes. In striking contrast, Non-canonical PRC1 complexes also bind to and promote the expression of genes critical for skin development and stem cell formation. Together, our findings highlight PRC1`s diverse roles in executing a precise developmental program, and demonstrate a functional link between PRC1-mediated epigenetic regulation and skin diseases.