Alkali-activated slag (AAS) has emerged as a potentially sustainable alternative to ordinary Portland cement (OPC) in various applications since OPC production contributed about 12% of global CO2 emissions in 2020. AAS offers great ecological advantages over OPC at some levels such as the utilization of industrial by-products and overcoming the issue of disposal, low energy consumption, and low greenhouse gas emission. Apart from these environmental benefits, the novel binder has shown enhanced resistance to high temperatures and chemical attacks. However, many studies have mentioned the risk of its considerably higher drying shrinkage and early-age cracking compared to OPC concrete. Despite the abundant research on the self-healing mechanism of OPC, limited work has been devoted to studying the self-healing behavior of AAS. Self-healing AAS is a revolutionary product that provides the solution for these drawbacks. This study is a critical review of the self-healing ability of AAS and its effect on the mechanical properties of AAS mortars. Several self-healing approaches, applications, and challenges of each mechanism are taken into account and compared regarding their impacts.