Aluminium (Al)-Lithium (Li) alloys have found widespread applications in aerospace and military domains. Primarily, they are found to have low density, leading to weight savings and several economic considerations. The paper explores the historical development of Al-Li alloys across distinct generations, highlighting their evolution. It also delves into the diverse applications of Al-Li alloys in aerospace and military domains. A concise discussion of the mechanical behaviour and tensile strengths is presented across the first, second, and third generations of Al-Li alloys. This review includes a discussion on microstructural investigation, emphasizing metallurgical factors such as increased efficiency, various precipitate phases, and intergranular features. Weldability and tribological properties of Al-Li alloys, with a specific emphasis on the corrosion aspects of these alloys are discussed. Furthermore, the review assesses the future development and manufacturing flexibility of Al-Li Metal Matrix Composites. In summary, this comprehensive review consolidates insights into the utilization, evolution, and characteristics of Al-Li Metal Matrix Composites, providing valuable information for researchers and practitioners aiming to enhance the performance of these alloys in aerospace applications.