The nickel-iron (Ni-Fe) battery is a century-old technology that fell out of favor compared to modern batteries such as lead–acid and lithium-ion batteries. However, in the last decade, there has been a resurgence of interest because of its robustness and longevity, making it well-suited for niche applications, such as off-grid energy storage systems. Currently, extensive research is focused on addressing perennial issues such as iron passivation and hydrogen evolution reaction, which limit the battery’s energy density, cyclability, and rate performance. Despite efforts to modify electrode composition and morphology, these issues persist, warranting a deeper look at the development story of Ni-Fe battery improvements. In this review, the fundamental reaction mechanisms are comprehensively examined to understand the cause of persisting issues. The design improvements for both the anode and cathode of Ni-Fe batteries are discussed and summarized to identify the promising approach and provide insights on future research directions.