The Ni/CeO₂ catalyst stands out among various solid metal oxide catalysts for its exceptional catalytic proficiency, positioning it as a prime candidate for the industrialization of methanation processes. This review thoroughly examines the prevalent challenges associated with Ni/CeO₂ in methanation reactions, compiles current strategies to overcome these hurdles, and presents novel perspectives. The review elucidates the structural characteristics of Ni/CeO₂ and its applications in catalytic reactions, discusses various synthesis methods and their respective merits and demerits, explores catalytic reaction systems at both laboratory and industrial scales, and clarifies the underlying reaction mechanisms. Furthermore, it underscores the mainstream approaches to enhance the low‐temperature activity of Ni/CeO₂ in methanation and to mitigate activity decrement due to Ni agglomeration. The review concludes by proposing future directions for improving low‐temperature methanation activity and preventing catalyst deactivation, encompassing the development of innovative catalyst architectures, integrating in‐situ characterization with theoretical calculations, and investigating photothermal methanation catalytic systems. Undoubtedly, scientific researchers will persistently strive to develop Ni/CeO₂ catalysts with high activity across a broad temperature range and robust stability, driving the industrialization of CO₂ methanation technology in the foreseeable future.