Lupus nephritis (LN), a serious complication of systemic lupus erythematosus (SLE), involves complex immune dysregulation that leads to chronic renal inflammation and progressive tissue damage. Despite decades of use of standard immunosuppressive therapy, treatment responses remain variable, and many patients experience relapses or develop end-stage renal disease. This review synthesizes emerging insights into the immunopathogenesis of LN, drawing on studies from single-cell transcriptomics, signaling pathway analyses and renal tissue immunology. It examines the role of both innate and adaptive immune cells in mediating disease. The therapeutic landscape is rapidly evolving with novel biologics targeting B cell survival and cytokine signaling, small-molecule inhibitors modulating intracellular pathways, and promising developments in cell-based interventions. Notably, recent clinical case series have demonstrated that CD19-directed chimeric antigen receptor (CAR) T-cell therapy can induce durable drug-free remission in LN, representing a transformative approach to immune modulation. These advances are further supported by the application of multi-omics platforms to refine biomarker-driven disease monitoring and personalized treatment. Integrating immunologic and technological innovations holds the potential to redefine therapeutic strategies in LN. Precision medicine approaches that leverage targeted therapies, immune resetting modalities, and biomarker-guided clinical decisions may significantly improve long-term renal outcomes and patient quality of life.