Direct ethanol fuel cells (DEFCs) are better than others in commercially used FCs due to easy availability, less toxicity, and C‐2‐type alcohol. Ethanol has a high theoretical efficiency of 97% and is a safe, plentiful, and renewable resource that can be stored and controlled using the infrastructure that is in place now. Nevertheless, low functional efficiencies and the release of carbon dioxide (CO2), acetaldehyde, and byproducts of acetic acid must be addressed if DEFCs are to grow and become more commercially viable. To overcome these problems, new anode and cathode catalysts are needed, so this review article discusses the introduction of FCs with their structure, working and mechanism. Further, the report covers various types of FC catalysts, and their application in FC technology is explained. The role of the catalyst (such as anode and cathode), similarities and differences between Pt/Pd‐based catalysts, and the importance of supporting materials (such as carbon, transition metal dichalcogenides, MXene, and black phosphorus‐based materials) in DEFCs are described. In addition, the applications, advantages, and disadvantages of the DEFCs are discussed. Finally, the proposed theme is concluded with the existing challenges in this field and the future prospect of DEFCs.