Solid oxide fuel cells (SOFCs) operating at high temperatures (>800 °C) have been overlooked in the past for automotive applications, primarily due to their longer start‐up times and inability to load follow (quickly respond to varying power demands). However, lower operating temperature SOFCs (LT‐SOFCs) enable more rapid start‐up and several other benefits. The rapid deployment of cost‐effective LT‐SOFC technology for automotive applications relies on the utilization of conventional ‘‘drop‐in’’ fuels (e. g., gasoline, diesel, ethanol etc.), that adapts the existing fuel distribution infrastructure. In particular, the liquid‐fed LT‐SOFCs have the potential to deliver higher “well‐to‐wheels” fuel conversion efficiencies than H2‐fed fuel cells as well as take advantage of the higher fuel energy density. Therefore, this review focuses on the benefits/challenges of low‐temperature SOFCs (350–650 °C) running on liquid fuels. The critical role of anodes and requirements/status of advanced anode materials for the direct utilization of liquid fuels in LT‐SOFCs are highlighted.