With increasing energy storage demands across various applications, reliable batteries capable of performing in harsh environments, such as extreme temperatures, are crucial. However, current lithium‐ion batteries (LIBs) exhibit limitations in both low and high‐temperature performance, restricting their use in critical fields like defense, military, and aerospace. These challenges stem from the narrow operational temperature range and safety concerns of existing electrolyte systems. To enable LIBs to function effectively under extreme temperatures, the optimization and design of novel electrolytes are essential. Given the urgency for LIBs operating in extreme temperatures and the notable progress in this research field, a comprehensive and timely review is imperative. This article presents an overview of challenges associated with extreme temperature applications and strategies used to design electrolytes with enhanced performance. Additionally, the significance of understanding underlying electrolyte behavior mechanisms and the role of different electrolyte components in determining battery performance are emphasized. Last, future research directions and perspectives on electrolyte design for LIBs under extreme temperatures are discussed. Overall, this article offers valuable insights into the development of electrolytes for LIBs capable of reliable operation in extreme conditions.