<p>Developing high-performance regenerated cellulose fiber (RCF) is crucially needed with the rising concerns related to pollution from applying high-strength oil-based materials. However, its production is confined mainly to the viscose type as it is well-developed. In contrast, other variants of RCF, the lyocell fiber, which is renowned for superior strength, simpler, and greener production practices compared to viscose, remain restricted only to staple fiber for civilian applications like apparel and bedding. The review aims to provide a comprehensive review of the recent advancements and key points methodologies in achieving the development of high-strength lyocell fiber, along with related theoretical basis and various production guidance. Key areas of focus critically discuss every production step and each influencing factor within the lyocell technology, covering the selection of suitable raw materials by analyzing the pulp fiber properties and structure, preparation of highly viscous and homogenous lyocell dope, difficulties faced during dissolution, optimization of cellulose molecular orientation during air gap spinning, execution of suitable coagulation bath, and after-treatment processes including the multi-stage drawing and heat treatment. The successful realization of high-performance lyocell fiber is anticipated to be revolutionary, as it offers superior mechanical properties and greater resilience compared to the existing high-performance RCF available in the market. This potential has paved the way for expanding the applications of lyocell fibers into critical areas where traditional lyocell staple fibers and high-tenacity viscose have previously been limited.</p>