Abstract: With the intensified energy crisis and environmental issues, it is of urgent demand to seek for an efficient and renewable alternative to replace the traditional fossil fuels. Hydrogen is considered one of the most promising energy carriers. Hydrogen fuel cell is the main form for the use of hydrogen energy. For fuel cell electric vehicles, the on-board hydrogen storage needs light, compact, and affordable system to replace the compressed hydrogen tanks. Mg-based hydrogen storage material is one of the most promising solid hydrogen storage systems, which has many advantages, but the bottlenecks that hinder its practical application are also difficult to overcome. In this article, the mechanisms for hydrogen absorption and desorption of Mg-based hydrogen storage material are introduced, the constraints of thermodynamic and kinetic properties on its practical applications are expounded, and the causes are further elaborated. The current research methods and progress are summarized, including the common methods of microstructure modification. In further, the development and prospects of Mg-based hydrogen storage material are proposed.