Sodium-ion batteries (SIBs) are a prominent alternative energy storage solution to lithium-ion batteries. Sodium resources are ample and inexpensive. This review provides a comprehensive analysis of the latest developments in SIB technology, highlighting advancements in electrode materials, electrolytes, and cell design. SIBs offer unique electrochemical properties, but they still face challenges in achieving comparable energy densities, cycle life, and commercial viability. The review delves into key innovations in anode materials, including carbonaceous and alloy-based options, and breakthroughs in cathode materials, such as layered oxides and polyanionic compounds. In addition to electrodes, electrolytes were explored with particular attention to current developments in liquid- and solid-state electrolyte technology. Biomass-derived materials garnered attention for their sustainability, cost-effectiveness, and environmental benefits in developing cathodes, anodes, and electrolytes. Furthermore, this paper explores the limitations associated with sodium's larger ionic radius, which impacts the structural stability and kinetics of SIBs. Sodium-ion batteries are presently experiencing swift advancement, propelled by their potential to satisfy the increasing need for sustainable and economical energy storage solutions. This present study examines the present cutting-edge technology, highlighting both scientific accomplishments and persisting challenges face by SIBs. It also evaluates the future prospects of SIBs in various sectors, including grid energy storage and electric vehicles, emphasizing their potential to complement or even replace lithium-based systems. Finally, the study proposes pathways to overcome existing technological barriers and accelerate the commercialization of SIBs.