The use of polymer latexes for high‐performance coatings is challenging as the properties required to allow for film formation at reasonable temperatures tend to result in films with relatively poor mechanical properties. In this review, routes to overcome this so‐called film‐formation dilemma are discussed. First, the use of coalescing agents, focusing in particular on more recent approaches to minimize the use of volatile organic compounds (VOCs), is reviewed. Subsequently, approaches that utilize hybrid latexes are considered. This includes the use of high/low Tg latex blends, nanocomposites that include a second, non‐polymeric phase, and multiphase latexes. Finally, the use of crosslinking technologies is considered, with a focus on necessary developments to reduce environmental impact. The review concludes with a summary and a discussion of possible future directions for research.