Perovskite solar cells (PSCs), as the forefront of third‐generation solar technology, are distinguished by their cost‐effectiveness, high photovoltaic efficiency, and the flexibility of their bandgap tunability, positioning them as formidable contenders in the photovoltaic market. However, the stability of PSCs remains a significant barrier to their widespread commercialization. Lamination encapsulation is identified as a pivotal intervention to enhance the durability of PSCs under external environmental stress. This review initiates with an in‐depth exploration of the degradation phenomena in PSCs, triggered by environmental stressors such as water, oxygen, light, and heat. This analysis lays bare the degradation mechanisms, thereby highlighting the specific demands for effective encapsulation materials. Subsequently, the review presents a systematic discourse on the latest developments in encapsulation materials, dissecting their molecular structures and linking these to their physical properties and performance in encapsulation applications. The narrative concludes by charting potential future research pathways intended to refine and enhance the encapsulation performance of PSCs, offering several routes for overcoming current limitations and propelling PSCs toward their full commercial potential.