World is passing through the energy crises due to the rapid depletion of fossil fuels.To address this crisis and to fulfill the energy demands worldwide, development of energy storage devices have increased rapidly. Also, renewable energy resources are intermittent, and therefore nevertheless, this energy resources are not always available. In that context, rechargeable lithium batteries are most promising energy storage devices owing to high energy and power density. Although, the development of the component of rechargeable battery such as anode, cathode and electrolyte are in progress as they play major role in enhancing the electrochemical performance of lithium-ion battery. Among them, electrolyte plays crucial role as it provides the path for diffusion of Li + ions between the electrodes. In that context, ionic liquid-based electrolytes are widely used as it acts as plasticizer and thus increases the conductivity of electrolyte considerably. In this chapter, we have discussed basics of ionic liquids and its application in electrolyte system. Also, in this chapter, we have discussed various properties of ionic liquid-based electrolytes and their application in rechargeable lithium battery.