Female sexual dysfunction is a common, multifactorial medical condition, which can have a major impact on self-esteem, quality of life, mood and relationships. Hormonal imbalances may contribute to sexual dysfunction, in particular sexual arousal disorder. Androgens for the treatment of decreased libido, especially in postmenopausal women, have gained increased popularity despite preliminary and controversial results. The absence of precise definitions of androgen deficiency, unknown 'normal' ranges for androgens, and nuances in the sensitivity of the various assays have made research on androgens and libido in women difficult to interpret. This review presents the role of estrogen and androgens in sexual function and their potential roles as therapeutic agents for female sexual dysfunction.