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Catalytic conversion of CO₂ into methane is an attractive method because it can alleviate global warming and provide a solution for the energy depletion crisis. Nickel-based catalysts were commonly employed in such conversions due to their high performance over cost ratio. However, the major challenges are that Ni tends to agglomerate and cause carbon deposition during the high-temperature reaction. In the past decades, extensive works have been carried out to design and synthesize more active nickel-based catalysts to achieve high CO₂ conversion and CH₄ selectivity. This review critically discusses the recent application of Ni-based catalyst for CO₂ methanation, including the progress on the effect of supporting material, promoters, and catalyst composition. The thermodynamics, kinetics, and mechanism of CO₂ methanation are also briefly addressed.