Spinel LiNi0.5Mn1.5O4 (LNMO) is one of the most promising high voltage cathode materials for future application due to its advantages of large reversible capacity, high thermal stability, low cost, environmental friendliness, and high energy density. LNMO can provide 20% and 30% higher energy density than traditional cathode materials LiCoO2 and LiFePO4, respectively. Unfortunately, LNMO-based batteries with LiPF6-based carbonate electrolytes always suffer from severe capacity deterioration and poor thermostability because of the oxidization of organic carbonate solvents and decomposition of LiPF6, especially at elevated temperatures and water-containing environment. Hence, it is necessary to systematically and comprehensively summarize the progress in understanding and modifying LNMO cathode from various aspects. In this review, the structure, transport properties and different reported possible fading mechanisms of LNMO cathode are first discussed detailedly. And then, the major goal of this review is to highlight new progress in using proposed strategies to improve the cycling stability and rate capacity of LNMO-based batteries, including synthesis, control of special morphologies, element doping and surface coating etc., especially at elevated temperatures. Finally, an insight into the future research and further development of LNMO cathode is discussed.