The recent, rapid progress in the development of direct borohydride fuel cells is reviewed. Electrochemical reactions are considered together with the importance of operating parameters on cell performance. The advances in technology necessary for a widespread testing and more application of borohydride fuel cells are highlighted. A comparison of borohydride and methanol fuel cells shows that both system exhibit similar cell voltages, current and power densities despite that methanol cells operate at higher temperatures. The results are encouraging although more research is necessary, particularly in the synthesis of new electrocatalysts for borohydride oxidation.