Choosing a suitable approach for CO2 utilization is crucial to achieving carbon neutrality and carbon peak goals as early as possible. Synthesis of synthetic natural gas (SNG) by methanation of CO2 using hydrogen produced from renewable energy is widely regarded as an efficient and promising carbon capture and utilization technology, which is expected to realize carbon recycling. Considering the importance of CO2 methanation, we provide a systematic review of the latest studies. Firstly, the effect of different reaction conditions on CO2 methanation is introduced from the perspective of thermodynamics. Secondly, the research progress of CO2 methanation catalysts is reviewed from four aspects: active metal, support, preparation method, and assistive technology. In detail, the active components are classified into cheap metal-based (Ni, Fe, Co, and Mo) and noble metal-based (Ru, Rh, Pt, and Pd) materials, and the supports are divided into the conventional oxides (Al2O3, SiO2, TiO2, ZrO2, and CeO2) and the supports with novel structures (e.g., metal-organic frameworks and carbon-based materials), which are all discussed and evaluated in depth. The preparation methods of catalyst are classified as the conventional ones (such as impregnation, coprecipitation, hydrothermal, sol-gel, and solid-phase synthesis) and unconventional ones. The latter includes three technologies such as ultrasound, microwave, and plasma, which can speed up the synthesis and reaction process and facilitate the high dispersion of the active components on the supports. Subsequently, two reaction mechanisms in CO2 methanation (the formate and CO pathways) are discussed. The specific reaction pathway for CO2 methanation is related to the properties of the catalyst surface (e.g., hydroxyl abundance, adsorbed O2- sites) and the reaction conditions (e.g., reaction temperature and pressure). Finally, current research challenges are put forward, and the prospects for future research in this area are made.