Al1−xScxN emerges as a revolutionary ferroelectric material within the III‐N family. It combines exceptional switchable polarization (80–165 µC cm−2), highly tunable coercive fields (1.5–6.5 MV cm−¹), and a wide bandgap (4.9–5.6 eV). Unlike conventional ferroelectrics, Al1−xScxN exhibits remarkable compatibility with both CMOS and III‐N technologies. It can be fabricated on plastic substrates at low temperatures, demonstrating excellent flexibility and biocompatibility. Remarkably, Al1−xScxN maintains superior performance in harsh environments due to its outstanding thermal stability (up to 1100 °C). These unique characteristics position Al1−xScxN as a highly promising candidate for a wide range of applications, including high‐performance memory, in‐memory computing, neuromorphic computing, and next‐generation wearable and implantable devices, particularly for operation in complex environments. Despite its potential, Al1−xScxN faces challenges such as high coercive fields, significant leakage currents, and limited polarization reversal cycle life. Addressing these challenges require a deeper understanding of the fundamental physics controlling Al1−xScxN films. This review explores the origins of Al1−xScxN's ferroelectricity and phase stability, delves into the fundamental theory of wurtzite ferroelectricity, investigates mechanisms for controlling spontaneous polarization and coercive fields, examines recent research progress in Al1−xScxN ferroelectric devices, and outlines future development directions for this exciting material.