In this case report, two patients developed extensive penile skin necrosis following augmentation phalloplasty with AlloDerm. The reconstruction of these penile wounds was accomplished through conservative wound management combining preservation of the remaining penile soft tissue with debridement of avascular tissue and foreign material until a healthy recipient site was suitable for skin grafting. Despite the current shortage of evidence regarding the safety and efficacy of cosmetic penile augmentation, the demand for this procedure will likely continue to rise. Until the appropriate studies are undertaken to establish indications for usage and the preferred procedure chosen, it is imperative that we carefully and honestly monitor outcomes to limit untoward results of all penile enlargement operations, including AlloDerm-based phalloplasties.