The catalytic conversion of CO₂ to value-added chemicals and fuels has been long regarded as a promising approach to the mitigation of CO₂ emissions if green hydrogen is used. Light olefins, particularly ethylene and propylene, as building blocks for polymers and plastics, are currently produced primarily from CO₂-generating fossil resources. The identification of highly efficient catalysts with selective pathways for light olefin production from CO₂ is a high-reward goal, but it has serious technical challenges, such as low selectivity and catalyst deactivation. In this review, we first provide a brief summary of the two dominant reaction pathways (CO₂-Fischer-Tropsch and MeOH-mediated pathways), mechanistic insights, and catalytic materials for CO₂ hydrogenation to light olefins. Then, we list the main deactivation mechanisms caused by carbon deposition, water formation, phase transformation and metal sintering/agglomeration. Finally, we detail the recent progress on catalyst development for enhanced olefin yields and catalyst stability by the following catalyst functionalities: (1) the promoter effect, (2) the support effect, (3) the bifunctional composite catalyst effect, and (4) the structure effect. The main focus of this review is to provide a useful resource for researchers to correlate catalyst deactivation and the recent research effort on catalyst development for enhanced olefin yields and catalyst stability.