Abstract The basic principles of operation of the direct methanol fuel cell (DMFC) are described, and ways in which this cell can be realized in practice reviewed. There are several serious problems that currently make it difficult to fabricate practical DMFCs; these include poor performance at both anode and cathode, degradation of the commonly used poly1fluorosulphonic acid membranes and permeation of methanol from anode to cathode cell compartments. Approaches to each of these problems are enumerated, and molecular insights and recent experimental data are brought together to provide an up‐to‐date account of the DMFC and its prospects.