The escalating energy demand has persuaded the scientific community to advent efficient methods for the utilization of carbon neutral fuels with existing technologies. CO_2, being a major component of greenhouse gases, draws more attention towards carbon capture and utilization (CCU) into energy rich products. Among all the CCU products, higher hydrocarbons, alcohols, and ethers are more desirable than low carbon-based products due to their featuring high energy density and minimal emissions. In this context, major advancements are being achieved in the production of fuels and fuel additives like ethanol, ethylene, ethane, dimethyl ether, light olefins (C₂–C₄ olefins), jet fuels (C₈–C₁₆ alkanes and cycloalkanes), aromatic products, etc. from CO₂ hydrogenation reaction. Hence, it is imperative to compile and analyze its important features regarding catalyst environment, mechanistic insights, conversion efficiency, product selectivity and so on from both experimental and theoretical perspectives. In our review, we comprehensively evaluate the developments towards promoting CO₂ hydrogenation to high carbon-based products. We intend to present the possible schemes, current challenges, and the expected future research pathways towards designing efficient catalytic systems for CO₂ reduction reaction. We expect such a review is of immense research interest and will motivate the scientific world in the direction of large-scale industrial production of clean energy fuels.