The efficient conversion of CO₂ to hydrocarbons offers a way to replace the dependency on fossil fuels and mitigate the accumulation of surplus CO₂ in the atmosphere that causes global warming. Therefore, various efforts have been made in recent years to convert CO₂ to fuels and value-added chemicals. In this review, the direct and indirect hydrogenation of CO₂ to hydrocarbons via methanol as an intermediate is spotlighted. We discuss the most recent approaches in the direct hydrogenation of CO₂ into hydrocarbons via the methanol route wherein catalyst design, catalyst performance, and the reaction mechanism of CO₂ hydrogenation are discussed in detail. As a comparison, various studies related to CO₂ to methanol on transition metals and metal oxide-based catalysts and methanol to hydrocarbons are also provided, and the performance of various zeolite catalysts in H₂, CO₂, and H₂O rich environments is discussed during the conversion of methanol to hydrocarbons. In addition, a detailed analysis of the performance and mechanisms of the CO₂ hydrogenation reactions is summarized based on different kinetic modeling studies. The challenges remaining in this field are analyzed and future directions associated with direct synthesis of hydrocarbons from CO₂ are outlined.