The urgent need to address global carbon emissions and promote sustainable energy solutions has led to a growing interest in carbon dioxide (CO) conversion technologies. Among these, the transformation of CO into methanol (MeOH) has gained prominence as an effective mitigation strategy. This review paper provides a comprehensive exploration of recent advances and applications in the direct utilization of CO for the synthesis of MeOH, encompassing various aspects from catalysts to market analysis, environmental impact, and future prospects. We begin by introducing the current state of CO mitigation strategies, highlighting the significance of carbon recycling through MeOH production. The paper delves into the chemistry and technology behind the conversion of CO into MeOH, encompassing key themes such as feedstock selection, material and energy supply, and the various conversion processes, including chemical, electrochemical, photochemical, and photoelectrochemical pathways. An in-depth analysis of heterogeneous and homogeneous catalysts for MeOH synthesis is provided, shedding light on the advantages and drawbacks of each. Furthermore, we explore diverse routes for CO hydrogenation into MeOH, emphasizing the technological advances and production processes associated with this sustainable transformation. As MeOH holds a pivotal role in a wide range of chemical applications and emerges as a promising transportation fuel, the paper explores its various chemical uses, transportation, storage, and distribution, as well as the evolving MeOH market. The environmental and energy implications of CO conversion to MeOH are discussed, including a thermodynamic analysis of the process and cost and energy evaluations for large-scale catalytic hydrogenation.