Ecology aims to elucidate how organisms interact with other organisms and their environment. As a fundamental concept of ecological research, the term ecological niche was coined to measure the ecological significance of a species in terms of species-specific attributes in relation to the acquisition of environmental resources and impact on the environment. By quantifying species niche, ecologists intended to formulate general rules for controlling various ecological processes, such as species distribution, community assembly, dynamics of the food web structure, and functioning. Over the course of a century, the concept of ecological niche has evolved; however, there is limited information about its essence and meaning. Furthermore, we lack knowledge about its quantification in practice, which means that niche-based theories are faced with significant challenges. Hence, we briefly reviewed the evolutionary history of the niche concept and highlighted its fundamental importance in building the theory of community ecology, such as competition exclusion, species coexistence, and community assembly. From the perspective of feedback dynamics between organisms and the environment, we rethink why the ecological niche can be used to explain various existing patterns but predict nearly nothing. We draw a conclusion that ecological niche not only measures the ecological significance of species that drives community dynamics but also presents it as an emerging consequence of the adaptation of species to the community environment. Moreover, it is essentially a conceptual framework, instead of an analytical approach, for understanding ecological rules. By reconciling the perspectives of reductionism and holism, we propose a conceptual framework for a dynamic niche that considers the importance of change in organism attributes, eco-evolutionary feedback, and stochastic processes on the dynamics of species fitness and community assembly. By updating the classical niche concept into a dynamic one, we aim to establish the foundation for the revision of theories of community ecology.