Methanol synthesis from the hydrogenation of carbon dioxide (CO2) with green H2 has been proven as a promising method for CO2 utilization. Among the various catalysts, indium oxide (In2O3)-based catalysts received tremendous research interest due to the excellent methanol selectivity with appreciable CO2 conversion. Herein, the recent experimental and theoretical studies on In2O3-based catalysts for thermochemical CO2 hydrogenation to methanol were systematically reviewed. It can be found that a variety of steps, such as the synthesis method and pretreatment conditions, were taken to promote the formation of oxygen vacancies on the In2O3 surface, which can inhibit side reactions to ensure the highly selective conversion of CO2 into methanol. The catalytic mechanism involving the formate pathway or carboxyl pathway over In2O3 was comprehensively explored by kinetic studies, in situ and ex situ characterizations, and density functional theory calculations, mostly demonstrating that the formate pathway was extremely significant for methanol production. Additionally, based on the cognition of the In2O3 active site and the reaction path of CO2 hydrogenation over In2O3, strategies were adopted to improve the catalytic performance, including (i) metal doping to enhance the adsorption and dissociation of hydrogen, improve the ability of hydrogen spillover, and form a special metal-In2O3 interface, and (ii) hybrid with other metal oxides to improve the dispersion of In2O3, enhance CO2 adsorption capacity, and stabilize the key intermediates. Lastly, some suggestions in future research were proposed to enhance the catalytic activity of In2O3-based catalysts for methanol production. The present review is helpful for researchers to have an explicit version of the research status of In2O3-based catalysts for CO2 hydrogenation to methanol and the design direction of next-generation catalysts.