The introduction of hybrid alternating current (AC)/direct current (DC) distribution networks led to several developments in smart grid and decentralized power system technology. The paper concentrates on several topics related to the operation of hybrid AC/DC networks. Such as optimization methods, control strategies, energy management, protection issues, and proposed solutions. The implementation of neural network optimization methods has great importance for the successful integration of multiple energy sources, dynamic energy management, establishment of system stability and reliability, power distribution optimization, management of energy storage, and online fault detection and diagnosis in hybrid networks like the hybrid AC–DC microgrids (MG). Taking advantage of renewable energy generation and cost-cutting through the neural network optimization technique holds the key to these progressions. Besides identifying the challenges in the operation of a hybrid system, the paper also compares this system to conventional MGs and shows the benefits of this type of system over different MG structures. This review compares the different topologies, particularly looking at the AC–DC coupled hybrid MGs, and shows the important role of the interlinking of converters that are used for efficient transmission between AC and DC MGs and generally used to implement the different control and optimization techniques. Overall, this review paper can be regarded as a reference, pointing out the pros and cons of integrating hybrid AC/DC distribution networks for future study and improvement paths in this developing area.