Hydrogen (H2) is a clean energy carrier with significant potential for power and heat generation, offering a pathway to reduce emissions from fossil fuels. Over the years, various feedstocks have been explored for H2 production, addressing the storage challenges associated with hydrogen. Methanol (MeOH) has emerged as one of the most efficient alternative fuel sources. Among the different MeOH conversion processes, steam reforming stands out for its high hydrogen selectivity. This review focuses on recent catalysts development, in particular MSR reactor design and configuration, an area that has received comparatively limited attention in previous studies. Innovative reactor configurations, such as membrane and small-scale reactors, address the limitations of traditional packed-bed units, including pressure drop, heat and mass transfer resistances, and scalability challenges. By systematically comparing and analysing various reactor configurations, we address a critical gap in existing reviews and provide fresh insights into optimizing the process performance. Additionally, the integration of methanol steam reforming with fuel cell systems presents a promising solution for reducing emissions in the transport sector. The review also discusses the relevant understanding on reaction mechanisms involved, followed by both the challenges and future prospects, emphasizing the importance of evaluating not only the environmental impact of these emerging technologies but also their manufacturing and operational costs.