While lacZ is a powerful tool, it has some limitations: 1. Sensitivity Issues: The detection of β-galactosidase activity may not be as sensitive as other reporter genes like GFP. 2. Tissue Penetration: The X-gal substrate may not penetrate all tissues equally, potentially leading to uneven staining. 3. Background Staining: Non-specific staining can sometimes occur, complicating the interpretation of results. 4. Compatibility Issues: In some cases, the lacZ gene may not be compatible with certain experimental conditions or organisms.