This comprehensive review examines the multifaceted role of climate finance in supporting developing nations in addressing climate change challenges. It begins by providing an overview of the global climate finance landscape, highlighting key sources such as public funds, private investments, and innovative financing mechanisms. The review then explores the allocation and distribution of climate finance, analyzing trends, disparities, and challenges in accessing and utilizing funds among developing nations. It assesses the effectiveness of climate finance in supporting mitigation and adaptation activities, using case studies and best practices to illustrate its impact. The review also evaluates the governance and institutional frameworks governing climate finance, including the roles of international financial institutions, national governments, and civil society organizations. Additionally, it discusses the challenges and opportunities associated with scaling up climate finance to meet the growing needs of developing nations, emphasizing the importance of financial transparency, accountability, and alignment with national development priorities. The review concludes by exploring innovative financing mechanisms such as green bonds, climate insurance, and carbon pricing, and underscores the need for enhanced international cooperation, policy coherence, and investment mobilization to accelerate climate action and build resilience in vulnerable regions. By leveraging climate finance effectively, developing countries can transition to low-carbon, climate-resilient economies while advancing their sustainable development goals.This comprehensive review examines the multifaceted role of climate finance in supporting developing nations in addressing climate change challenges. It begins by providing an overview of the global climate finance landscape, highlighting key sources such as public funds, private investments, and innovative financing mechanisms. The review then explores the allocation and distribution of climate finance, analyzing trends, disparities, and challenges in accessing and utilizing funds among developing nations. It assesses the effectiveness of climate finance in supporting mitigation and adaptation activities, using case studies and best practices to illustrate its impact. The review also evaluates the governance and institutional frameworks governing climate finance, including the roles of international financial institutions, national governments, and civil society organizations. Additionally, it discusses the challenges and opportunities associated with scaling up climate finance to meet the growing needs of developing nations, emphasizing the importance of financial transparency, accountability, and alignment with national development priorities. The review concludes by exploring innovative financing mechanisms such as green bonds, climate insurance, and carbon pricing, and underscores the need for enhanced international cooperation, policy coherence, and investment mobilization to accelerate climate action and build resilience in vulnerable regions. By leveraging climate finance effectively, developing countries can transition to low-carbon, climate-resilient economies while advancing their sustainable development goals.