Recently, a paradigm shift toward the tremendous use of portable and mobile consumer products is observed and it consequently increases the battery demand. Currently, lithium‐ion batteries (LIBs) are used in almost all kinds of devices, however, the increased usage of LIBs raises some safety concerns. For safe operation, it is necessary to investigate the all important chemical and physical features of LIBs. Several mathematical models are proposed such as equivalent circuit models (ECMs), physics‐based ECM and electrochemical models (EMs). Among them pseudo‐two‐dimensional (P2D) model is most famous and comprehensive physics‐based EM and used frequently to study the battery electrochemical phenomena. Hence, the focus of this review work is to summarize the reported literature on the P2D model governing laws, its simplified models, coupled models, solution techniques, parameter analysis, and its applications. The literature survey shows that the P2D and its simplified models are very helpful to analyze the important aspects of LIBs such as state of charge, state of health, recycling, battery manufacturing and design etc. Also, it can be seen that no single model can be fit to study every aspect of LIBs and design a comprehensive battery management system (BMS) but different models can be used to address the specific applications.