Abstract: The combustion of fossil fuels is accompanied by substantial carbon emissions, posing a serious threat to the global ecosystem. The development of novel zero-carbon fuels has thus emerged as a critical pathway toward achieving carbon neutrality goals. Iron powder fuel, characterized by its high volumetric energy density, abundant reserves, relatively low production and application costs, and easily recyclable combustion products, has become one of the most promising zero-carbon energy carriers. A systematic review of the current research status and technological advances in iron powder fuel combustion, covering both domestic and international studies, is presented in this paper. First, combustion models of iron powder particles are categorized and summarized based on differences in research focus and methodology, along with diagnostic techniques currently employed to study the combustion process. Subsequently, the effects of particle size, equivalence ratio, and oxygen concentration on combustion characteristics are elucidated. The ignition behavior, flame propagation dynamics, and mechanisms of pollutant formation during iron powder combustion are analyzed in detail, and optimal ranges for key parameters are identified. Furthermore, the current state of iron-powder-based energy storage and power generation systems is examined, with a summary of the underlying principles, technical advantages, and practical challenges associated with iron powder reduction and regeneration technologies within the energy storage cycle. Finally, future prospects for renewable iron powder fuel are outlined from both fundamental research and applied perspectives, and key directions for subsequent work are highlighted. Research on novel energy conversion technologies utilizing iron powder combustion holds significant theoretical and practical value for accelerating the global transition to sustainable energy and establishing a low-carbon economy.