Alkaline anion-exchange membrane (AAEM) fuel cells have attracted significant interest in the past decade, thanks to the recent developments in hydroxideanion conductive membranes. In this article, we compare the performance of current state of the art AAEM fuel cells to proton-exchange membrane (PEM) fuel cells and elucidate the sources of various overpotentials. While the continued development of highly conductive and thermally stable anion-exchange membranes is unambiguously a principal requirement, we attempt to put the focus on the challenges in electrocatalysis and interfacial charge transfer at an alkaline electrode/electrolyte interface. Specifically, a critical analysis presented here details the (i) fundamental causes for higher overpotential in hydrogen oxidation reaction, (ii) mechanistic aspects of oxygen reduction reaction, (iii) carbonate anion poisoning, (iv) unique challenges arising from the specific adsorption of alkaline ionomer cation-exchange head groups on electrocatalysts surfaces, and (v) the potential of alternative small molecule fuel oxidation. This review and analysis encompasses both the precious and nonprecious group metal based electrocatalysts from the perspective of various interfacial charge-transfer phenomena and reaction mechanisms. Finally, a research roadmap for further improvement in AAEM fuel cell performance is delineated here within the purview of electrocatalysis and interfacial charge transfer.