Abstract: In the course of the struggle for the "dual carbon" strategy and energy transformation, the peak shaving realized by the large-scale storage of hydrogen transported via pipeline is very important, while the underground hydrogen storage technology is recognized as the most feasible solution for large-scale hydrogen storage. So far as can be ascertained, no underground hydrogen storage project has been implemented in China. In pursuit of the accelerated development of underground hydrogen storage technology, a review was made concerning the research progress and technical bottlenecks. Meanwhile, a feasibility analysis was performed in terms of geology, seepage, materials and injection-extraction. Ultimately, the following results were obtained: As a result of few geochemical reactions and underground microbial reactions in salt caverns, there are less prominent steel corrosion and a drop in hydrogen production rate, making such salt caverns ideal hydrogen storage structures. Despite the good hydrogen sealing performance of salt rocks, the particularly violent unstable migration of hydrogen in depleted oil and gas reservoirs and aquifer structures may lead to serious hydrogen leakage. Metal, cement and rubber elastomer materials may be deteriorated and result in seepage in the underground hydrogen storage environment, further leading to material failure. Thus, appropriate materials should be selected according to the specific hydrogen storage environment to reduce the material failure probability. Besides, the hydrogen recovery can be enhanced by a lower hydrogen injection rate and reduced molecular weight of cushion gas. Moreover, the measures, such as the adoption of the optimized injection-extraction rate and shut-in time, regular impurity removal and application of biological bactericides, are conducive to improving the purity of hydrogen. Generally, the research results are expected to provide some references for the future development of underground hydrogen storage technology in China.