Objective To explore the application advantages of the UST microneedle lateral positioning encryption technology in the field of hair transplantation. Methods From October 2021 to October 2022, 80 patients who underwent implantation in our hospital were selected as the research objects. They were divided into control group and observation group according to different treatment schemes, with 40 patients in each group. The control group was treated with traditional hair planting technology, and the observation group was treated with UST microneedle lateral positioning encryption technology. The clinical efficacy and hair condition of the two groups were compared. Results The total effective rate of treatment in the observation group was 97.50%, which was higher than 80.00% in the control group, and the difference was statistically significant (P<0.05). The number of hair follicles in the observation group was better than those of the control group, the differences were statistically significant (P<0.05). Conclusion The application effect of UST microneedle lateral positioning encryption technology in the field of hair implantation is accurate. Compared with the traditional hair implantation technology, it has more advantages, which can effectively improve the hair density and hair naturalness, help to improve the effect of hair implantation, and is worthy of clinical application.