Recent advances in micro-pixel light emitting diode (μLED) technology are reviewed, focusing on key challenges and solutions for commercialization. μLEDs, based on III–V systems, offer high resolution, brightness, and efficiency, making them suitable for next-generation displays. However, their performance is affected by size-dependent degradation mechanisms, including non-radiative recombination, sidewall damage, and carrier diffusion. The ABC model is used to interpret μLED behavior, with non-radiative recombination being a major factor in efficiency loss. Solutions include improving passivation techniques, optimizing epitaxial structures, and enhancing light extraction efficiency. Red μLEDs, particularly those based on AlGaInP and InGaN systems, are critical for full-color displays, but their efficiency is affected by carrier diffusion and surface recombination. Advanced transfer techniques and defect detection/repair processes are essential for commercialization. The review highlights the importance of reducing sidewall recombination and improving carrier lifetime to enhance μLED performance. Various passivation methods, including chemical treatments and dielectric layers, are effective in mitigating surface defects and improving EQE. The study emphasizes the need for further research to overcome size-dependent efficiency degradation and achieve high-performance μLED displays.Recent advances in micro-pixel light emitting diode (μLED) technology are reviewed, focusing on key challenges and solutions for commercialization. μLEDs, based on III–V systems, offer high resolution, brightness, and efficiency, making them suitable for next-generation displays. However, their performance is affected by size-dependent degradation mechanisms, including non-radiative recombination, sidewall damage, and carrier diffusion. The ABC model is used to interpret μLED behavior, with non-radiative recombination being a major factor in efficiency loss. Solutions include improving passivation techniques, optimizing epitaxial structures, and enhancing light extraction efficiency. Red μLEDs, particularly those based on AlGaInP and InGaN systems, are critical for full-color displays, but their efficiency is affected by carrier diffusion and surface recombination. Advanced transfer techniques and defect detection/repair processes are essential for commercialization. The review highlights the importance of reducing sidewall recombination and improving carrier lifetime to enhance μLED performance. Various passivation methods, including chemical treatments and dielectric layers, are effective in mitigating surface defects and improving EQE. The study emphasizes the need for further research to overcome size-dependent efficiency degradation and achieve high-performance μLED displays.