The growing demand for sustainable energy sources has spurred significant studies to optimize the potency of fuel cell technology. Direct urea fuel cell (DUFC) has gained attention due to their energy density, eco‐friendliness, and potential applications in power generation using urea from various sources, including wastewater and urine. Efficient electrocatalysts are pivotal in DUFCs, and nickel‐based catalysts, particularly in the form of NiOOH, have demonstrated cost effectiveness, excellent stability in alkaline media, and good activity for urea oxidation reaction. However, low‐density and durability are still the major limitation in the overall DUFC performance. This review provides a comprehensive analysis of the latest development in Ni‐based catalysts, covering synthesis methods, factors influencing the catalytic activity as well as their implications for DUFC performance durability and commercial viability. In addition, another important factor including the use of different oxidant and electrolyte medium is also elaborated. Based on this review, 2D‐3D Ni‐based materials with the addition of other metals and the use of non‐oxide nickel binary compound are predicted to be the future evolution of the effective nickel‐based catalysts.