ZSM-5 zeolite is widely used in catalytic cracking of hydrocarbon, but the conventional ZSM-5 zeolite deactivates quickly due to its simple microporous and long diffusion pathway. Many studies have been done to overcome these disadvantages recently. In this review, four main approaches for enhancing the catalytic performance, namely synthesis of ZSM-5 zeolite with special morphology, hierarchical ZSM-5 zeolite, nano-sized ZSM-5 zeolite and optimization of acid properties, are discussed. ZSM-5 with special morphology such as hollow, composite and nanosheet structure can effectively increase the diffusion efficiency and accessibility of acid sites, giving high catalytic activity. The accessibility of acid sites and diffusion efficiency can also be enhanced by introducing additional mesopores or macropores. By decreasing the crystal size to nanoscale, the diffusion length can be shortened. The catalytic activity increases and the amount of carbon deposition decreases with the decrease of crystal size. By regulating the acid properties of ZSM-5 with element or compound modification, the overreaction of reactants and formation of carbon deposition could be suppressed, thus enhancing the catalytic activity and light alkene selectivity. Besides, some future needs and perspectives of ZSM-5 with excellent cracking activity are addressed for researchers’ consideration.