The field of next‐generation microdisplays is flourishing. Relevant display technologies, such as mini‐light emission diodes (mini‐LEDs), micro‐organic light emission diodes (micro‐OLEDs), and micro‐light emission diodes (micro‐LEDs) are thus in the urgent stage of development. From this perspective, comprehensive and systematical analyzes are conducted for the aforesaid microdisplay configurations. A holistic view of microdisplay technologies is developed with the corresponding performance metrics, providing a path for miscellaneous scenarios. Among these scenarios, the applications in augmented reality (AR), virtual reality (VR), wearable devices, and head‐up displays (HUD) are currently attracting considerable attention for deeper human‐digital interactions. However, there is a multiplicity of obstacles and challenges hindering such development. Nevertheless, recent advances in microdisplay technologies hold tremendous promise for the paradigms of these applications, taking a leap forward for next‐generation microdisplays. This review presents perspectives, relevant materials, and the technology landscape for such ongoing display technologies, offering guidance on the design of advanced microdisplays. The demand for augmented reality (AR), virtual reality (VR), wearables, and head‐up display (HUD) technology has fueled the rapid growth of next‐generation microdisplays. Despite their promise, challenges remain. This review analyzes performance metrics across various scenarios and provides valuable materials and technology perspectives for ongoing display technology. Our guidance for advanced microdisplay design aims to overcome obstacles and improve the field.