The depletion of natural resources and the intermittence of renewable energy resources have pressed the need for a hybrid microgrid, combining the benefits of both AC and DC microgrids, minimizing the overall deficiency shortcomings and increasing the reliability of the system. The hybrid microgrid also supports the decentralized grid control structure, aligning with the current scattered and concentrated load scenarios. Hence, there is an increasing need to explore and reveal the integration, optimization, and control strategies regarding the hybrid microgrid. A comprehensive study of hybrid microgrid’s performance parameters, efficiency, reliability, security, design flexibility, and cost-effectiveness is required. This paper discusses major issues regarding the hybrid microgrids, the integration of AC and DC microgrids, their security and reliability, the optimization of power generation and load management in different scenarios, the efficient management regarding uncertainty for renewable energy resources, the optimal placement of feeders, and the cost-effective control methodologies for the hybrid microgrid. The major research areas are briefly explained, aiming to find the research gap that can further improve the performance of the grid. In light of the recent trends in research, novel strategies are proposed that are found most effective and cost-friendly regarding the hybrid microgrid. This paper will serve as a baseline for future research, comparative analysis, and further development of novel techniques regarding hybrid microgrids.