Al-Li alloys are attractive for military and aerospace applications because their properties are superior to those of conventional Al alloys. Their exceptional properties are attributed to the addition of Li into the Al matrix, and the technical reasons for adding Li to the Al matrix are presented. The developmental history and applications of Al-Li alloys over the last few years are reviewed. The main issue of Al-Li alloys is anisotropic behavior, and the main reasons for the anisotropic tensile properties and practical methods to reduce it are also introduced. Additionally, the strengthening mechanisms and deformation behavior of Al-Li alloys are surveyed with reference to the composition, processing, and microstructure interactions. Additionally, the methods for improving the formability, strength, and fracture toughness of Al-Li alloys are investigated. These practical methods have significantly reduced the anisotropic tensile properties and improved the formability, strength, and fracture toughness of Al-Li alloys. However, additional endeavours are required to further enhance the crystallographic texture, control the anisotropic behavior, and improve the formability and damage tolerance of Al-Li alloys.