The transverse shear Alfvén wave (SAW) is a fundamental anisotropic electromagnetic oscillation in plasmas with a finite background magnetic field. In realistic plasmas with spatial inhomogeneities, SAW exhibits the interesting spectral feature of a continuous spectrum. That is, the SAW oscillation frequency varies in the non-uniform (radial) direction. This continuum spectral feature then naturally leads to the phase-mixing process; i.e., time asymptotically, the effective radial wave-number increases with time. Any initial perturbation of SAW structures will, thus, evolve eventually into short-wavelength structures; termed as kinetic Alfvén wave (KAW). Obviously, one needs to employ kinetic theory approach to properly describe the dynamics of KAW; including effects such as finite ion-Larmor radius (FILR) and/or wave–particle interactions. When KAW was first discovered and discussed in 1975–1976, it was before the introduction of the linear electromagnetic gyrokinetic theory (1978) and nonlinear electromagnetic gyrokinetic theory (1982). Kinetic treatments then often involved the complicated procedures of taking the low-frequency limit of the Vlasov kinetic theory and/or employing the drift-kinetic theory approach; forsaking, thus, the FILR effects. In recent years, the powerful nonlinear gyrokinetic theory has been employed to re-examine both the linear and nonlinear physics of KAWs. This brief review will cover results of linear and nonlinear analytical theories, simulations, as well as observational evidences. We emphasize, in particular, that due to the enhanced electron–ion de-coupling in the short-wavelength regime, KAWs possess significantly enhanced nonlinear coupling coefficients and, thereby, play important roles in the heating, acceleration, and transport processes of charged particles in magnetized plasmas.