Lithium-ion batteries (LIBs) with liquid electrolytes and microporous polyolefin separator membranes are ubiquitous. Though not necessarily an active component in a cell, the separator plays a key role in ion transport and influences rate performance, cell life and safety. As our understanding of separator properties and the interactions between the separator and the electrolyte deepens, it becomes evident that there are opportunities for improving separators to help meet the greater demands that new applications place on LIB technology. Here, we review the impact of the separator structure and chemistry on LIB performance, assess characterization techniques relevant for understanding structure–performance relationships in separator membranes, and provide an outlook on next-generation separator technology. Insights from this Review indicate that LIB performance can be improved by taking into account the interplay of the separator with its surroundings and indicate that, in the future, separators will be designed to play a more active role in LIB operation. Current and emerging characterization techniques will play an important role in guiding this evolution in separator technology.