Supercapacitors (SCs) have emerged as critical components in applications ranging from transport to wearable electronics due to their rapid charge‐discharge cycles, high power density, and reliability. This review offers an analysis of recent strides in supercapacitor research, emphasizing pivotal developments in sustainability, electrode materials, electrolytes, and 'smart SCs' designed for modern microelectronics with attributes such as flexibility, stretchability, and biocompatibility. Central to this discourse are two dominant electrode materials: carbon materials (CMs), primarily in Electric Double Layer Capacitors (EDLCs), and pseudocapacitive materials, involving oxides/hydroxides, chalcogenides, metal‐organic frameworks, conductive polymers and metal nitrides such as MXene. Despite EDLCs' historical use, challenges such as low energy density persist, with heteroatom introduction into the carbon lattice posed as a solution. Concurrently, pseudocapacitive materials dominate recent studies, with efficiency enhancement strategies, such as the creation of hybrids based on different types of materials, surface structural engineering and doping, under exploration. Emphasis is given to smart SCs with novel attributes such as self‐charging, self‐healing, biocompatibility, and environmentally conscious designs. In summary, the article underscores the drive in sustainable supercapacitor research to achieve high energy and power density, steering towards SCs that are efficient and versatile and involving bioderived/biocompatible SC materials.