Metal nanoclusters (NCs), which are composed of about 250 or fewer metal atoms, possess great potential as novel functional materials. Fundamental research on metal NCs gradually started in the 1960s, and since 2000, thiolate (SR)‐protected metal NCs have been the main metal NCs actively studied. The precise and systematic isolation of SR‐protected metal NCs has been achieved in 2005. Since then, research on SR‐protected metal NCs for both basic science and practical application has rapidly expanded. This review describes this recent progress in the field of SR‐protected metal NCs in three areas: synthesis, understanding, and application. Specifically, the recent study of alloy NCs and connected structures composed of NCs is highlighted in the “synthesis” section, recent knowledge on the reactivity of NCs in solution is highlighted in the “understanding” section, and the applications of NCs in the energy and environmental field are highlighted in the “application” section. This review provides insight on the current state of research on SR‐protected metal NCs and discusses the challenges to be overcome for further development in this field as well as the possibilities that these materials can contribute to solving the problems facing modern society.