Anion exchange membranes (AEMs) are increasingly used in fuel cell applications because of their ability to overcome the limitations of cationic exchange membranes. The goal of this review is to provide a thorough examination of how AEMs have advanced in fuel cell technology, as well as the issues they pose and identify areas for further improvement and address the constraints that prevent widespread commercialization of AEMs through an analysis of the current state-of-the art in AEM development. The review includes a thorough survey of the literature to provide an in-depth understanding of the composition, fabrication methods, and performance characteristics of AEMs based on piperidine, imidazole, carbazole, styrene, polyether, and other functional groups. Furthermore, the review discusses how AEMs can enhance the efficiency and sustainability of energy conversion devices by modifying the properties of membranes by adopting various techniques including microphase, organic/ inorganic composites and cross-linking, shedding light on their crucial role in supporting alkaline fuel cells. In addition, this analysis delves into important issues, such as chemical stability, water management, ion conductivity, and membrane durability. These criteria are critical to assuring the practical feasibility of AEM-based fuel cells. By addressing these challenges, the review provides insights for future research efforts and strategic interventions aimed at overcoming these barriers.