Abstract Proton exchange membrane (PEM) fuel cells are a promising candidate as the next-generation power sources for portable, transportation, and stationary applications. Gas diffusion layers (GDL) coated with microporous layers (MPL) are a vital component of PEM fuel cells, providing multiple functions of mechanical support, reactant transport, liquid water removal, waste heat removal, and electron conductance. In this review, we explain several most important aspects in the research and development (R&D) of this fuel cell component, including material characterization, liquid water detection/quantitation, structure reconstruction, fundamental modeling, transport properties, and durability. Specially, the commonly used microstructure reconstruction methods for GDLs are presented and discussed. Visualization techniques for liquid water detection in the GDL and MPL microstructures are described. Major modeling approaches, such as the multiphase mixture (M2) formulation, pore networks model (PNM), lattice Boltzmann method (LBM) and volume of fluid (VOF) approach, are reviewed and explained. Important material properties and parameters that greatly influence two-phase flow and fuel cell performance, and GDL-related material degradation issues are discussed and summarized to further advance on the GDL material design and development.