Direct ethanol fuel cells (DEFCs) offer a high degree of design flexibility, ranging from a single cell to a massive multi‐cell that can be used in various applications, including portable devices, transportation, and stationary applications. Unfortunately, the most significant barrier to the commercialization of DEFCs is getting low‐cost and ethanol permeability, high conductivity performance, and extended durability of polymer electrolyte membranes, as key components that highly influence the overall performance. In this paper, the recent progress in developing the polymer electrolyte membrane for the application of DEFCs has been comprehensively reviewed. Focusing on an updated modification of polymeric materials in the last 5 years, including Nafion‐based membrane, polyvinyl alcohol‐based membrane, polybenzimidazoles‐based membrane, chitosan‐based membrane, and sodium alginate‐based membrane, as well as factors and challenges that affected the performance of polymer electrolyte membranes have been discussed, including the main characterization, catalyst selection, cell design, and work in membrane and cell performance of DEFCs. All discussion addresses the strategy to improve the performance of polymer electrolyte membranes in DEFCs in order to penetrate the commercialization stages.