Hydrogen is a kind of clean and sustainable energy source and arises wide attention in industrial and commercial scenarios. The utilization of hydrogen in safety is eternal theme, thereby it is important to detect hydrogen quickly and accurately in production, use and storage stage. This review focuses on the fiber grating hydrogen sensor, which depicts a great promising for industrial application, introduces the up‐to‐date progress and provides new insight for scale use. Starting with an overview of the sensing mechanism of hydrogen‐sensitive material, then this paper briefly introduces the working principle of fiber grating hydrogen sensor. After that, design and optimization methods for fiber grating hydrogen sensor are emphatically summarizes from viewpoints of sensor structure, hydrogen‐sensitive material, and sensor durability. Last, the challenges of fiber grating hydrogen sensor for practical applications are demonstrated and the future prospects are also put forward, namely the depth investigation in structure, material, key fabrication technology and environmental adaptability of sensor.