Producing hydrogen using anion exchange membrane (AEM) water electrolysis is a promising approach to address the severe energy crisis facing human society. AEM electrolysis can be integrated with intermittent and sustainable energy sources, utilize low-cost electrocatalysts and other inexpensive components in stacks. The sporadic investigation on catalysts and membrane development of AEM electrolysis enable it still under the early stage of development. To enable commercially viable hydrogen generation, deeper understanding and improvement of AEM electrolysis technology is imperative, including power efficiency, stack feasibility, mem-brane stability, ion conductivity, robustness and cost reduction. In this review, the basic principles, progress and challenges of AEM are discussed. We highlight recent achievements in electrocatalysts, alkaline exchange membranes, ionomers, and the resulting AEM electrolyser performance. In particular, development challenges facing AEM electrolysis are summarized. Hopefully, this review paper will attract additional interest to close technical gaps, while providing practical research recommendations for AEM electrolysis research, leading to scalable hydrogen production.