Metal‐halide perovskites (MHPs) are well suited to be vivid natural color emitters due to their superior optical and electrical properties, such as narrow emission linewidths, easily and widely tunable emission wavelengths, low material cost, and high charge carrier mobility. Since the first development of MHP light‐emitting diodes (PeLEDs) in 2014, many researchers have tried to understand the properties of MHP emitters and the limitations to luminescence efficiency (LE) of PeLEDs, and have devoted efforts to increase the LE of MHP emitters and PeLEDs. Within three and half years, PeLEDs have shown rapidly increased LE from external quantum efficiency ≈0.1% to ≈14.36%. Herein, the factors that limit the LE of PeLEDs are reviewed; the factors are characterized into the following groups: i) photophysical properties of MHP crystals, ii) morphological factors of MHP layers, and iii) problems caused by device architectures. Then, the strategies to overcome those luminescence‐limiting factors in MHP emitters and PeLEDs are critically evaluated. Finally, research directions to further increase the LE of MHP emitters and the potential of MHPs as a core component in next‐generation displays and solid‐state lightings are suggested. The factors that limit the luminescence efficiency (LE) of metal halide perovskite (MHP) light‐emitting diodes (PeLEDs) are reviewed by categorizing them into i) photophysical properties of MHPs, ii) morphological factors, and iii) problems caused by device architectures. Various strategies to overcome those LE‐limiting factors in MHPs and PeLEDs, and research directions to further increase the LE of MHPs are discussed.