Methanol to hydrocarbon (MTH) reaction is an important way to prepare various hydrocarbons from non-oil routes, which has important basic research and industrial application value, and has become one of the research hotspots of coal-based alternative energy sources. However, there is still much debate about the understanding of the reaction mechanism of methanol-based hydrocarbons and the confirmation of reaction steps. The complex reaction network limited the analysis and verification of the reaction mechanism, thus slowing down the design of the reactor and development process of technology in these reactions. In this review, the main progress of the reaction mechanism of MTH in recent years is summarized from the two aspects: direct mechanism and indirect mechanism. The double-cycle catalytic mechanism of the hydrocarbon pool accepted widely was highlighted. The MTH hydrocarbon pool mechanism involved six major chemical processes: olefin methylation, olefin cracking, hydrogen transfer, cyclization, aromatic methylation and aromatic dealkylation. A systematic understanding of the mechanism of the reaction provides a theoretical basis, with accurately designing crystal shape, size, pore structure of the catalyst, as well as regulating of the distribution of acidic sites, which lays a foundation for the establishment of the catalytic structure-activity relationship of this complex reaction. This is of great significance to the industrialization process of the development of coal chemical industry.