Display technology has developed rapidly in recent years, with III–V system-based micro-light-emitting diodes (μLEDs) attracting attention as a means to overcome the physical limitations of current display systems related to their lifetime, brightness, contrast ratio, response time, and pixel size. However, for μLED displays to be successfully commercialized, their technical shortcomings need to be addressed. This review comprehensively discusses important issues associated with μLEDs, including the use of the ABC model for interpreting their behavior, size-dependent degradation mechanisms, methods for improving their efficiency, novel epitaxial structures, the development of red μLEDs, advanced transfer techniques for production, and the detection and repair of defects. Finally, industrial efforts to commercialize μLED displays are summarized. This review thus provides important insights into the potential realization of next-generation display systems based on μLEDs.