Anode‐free solid‐state lithium batteries are promising for next‐generation energy storage systems, especially the mobile sectors, due to their enhanced energy density, improved safety, and extended calendar life. However, the inefficiency of lithium plating and stripping leads to rapid capacity degradation due to the absence of excess lithium inventory. Therefore, dissecting the difficulties and challenges faced by anode‐free solid‐state lithium batteries can pave the way to improving the cycle life of many lithium batteries. In this review, the key issues affecting capacity degradation are elaborated step‐by‐step based on the current understanding of anode‐free solid‐state lithium batteries. Furthermore, various strategies for optimizing performance are targeted. Finally, future opportunities and possible directions for anode‐free solid‐state lithium batteries are evaluated, aiming to stimulate the exploration of this emerging field.