Methane (CH₄), as a critical anthropogenic greenhouse gas, significantly impacts the Earth’s radiation balance and the concentration of ozone in the troposphere. There is considerable uncertainty in the current bottom-up emission inventories when estimating the total methane emissions and their spatial distribution. Satellite remote sensing technology, with its wide coverage and efficient monitoring capabilities, provides an effective means for monitoring the global atmospheric CH₄ concentration. This study reviews the techniques for detecting and inverting atmospheric methane based on satellite remote sensing, categorizing methane remote sensing satellites into two main types: regional flux plotters and point source imagers. It summarizes the performance of CH₄ satellite-borne detection satellites and the development of detection technology. Furthermore, it analyzes the application of various sensor CH₄ inversion algorithms and their data products in emission monitoring and flux inversion, discussing the strengths and limitations of different inversion algorithms. Finally, in line with the strategic needs of China’s dual-carbon targets, the future development trend of methane remote sensing satellites is predicted, and the future direction of CH₄ inversion technology research is prospected, aiming to provide a reference for the construction of China’s atmospheric CH₄ satellite remote sensing system.