To achieve natural-looking skin retouching in Photoshop, avoid over-smoothing the skin. Use the Healing Brush and Spot Healing Brush to remove blemishes and imperfections, but maintain texture by using the Clone Stamp sparingly on lower opacity. You can also use the Frequency Separation technique, which separates texture and color for more precise retouching. This allows you to smooth the skin without losing natural details like pores, giving a more realistic and professional result.