Catalytic decomposition of methane is a viable method of producing hydrogen and carbon nanomaterials. Hydrogen gas is mainly used as a reactant in the chemical industry, i.e., petrochemicals, glass, and pharmaceutical industries, whereas carbon may be used in direct carbon fuel cells or marketed as a filamentous carbon. Demand for carbon monoxide (CO)–free hydrogen continues to rise due to the increase in the number of its applications. Currently, a significant amount of hydrogen comes from gasification of natural gas, oxidation, and steam reforming of hydrocarbons. In all these technologies, CO is formed as a by‐product that requires tedious and costly processes to separate hydrogen from syngas. Herein, the recent literature on methane decomposition, methane reaction kinetics, catalyst performance, hydrogen yield, and formation of carbon nanomaterial are reviewed. The scope of this work is limited to direct conversion of methane into carbon and hydrogen; therefore, processes involving synthesis gas as intermediate products are not covered. Finally, catalysts that are often used in methane decomposition, their deactivation, and regeneration are discussed with the aim of documenting the foundation upon which an entirely new class of catalysts can be built to enhance their activity, selectivity, and yield.