The investigation into intercalation mechanisms in vanadium pentoxide has garnered significant attention within the realm of research, primarily propelled by its remarkable theoretical capacity for energy storage. This comprehensive review delves into the latest advancements that have enriched our understanding of these intricate mechanisms. Notwithstanding its exceptional storage capacity, the compound grapples with challenges arising from inherent structural instability. Researchers are actively exploring avenues for improving electrodes, with a focus on innovative structures and the meticulous fine-tuning of particle properties. Within the scope of this review, we engage in a detailed discussion on the mechanistic intricacies involved in ion intercalation within the framework of vanadium pentoxide. Additionally, we explore recent breakthroughs in understanding its intercalation properties, aiming to refine the material’s structure and morphology. These refinements are anticipated to pave the way for significantly enhanced performance in various energy storage applications.