As fossil fuels continue to be extracted and used, issues such as environmental pollution and energy scarcity are surfacing. For the transportation industry, the best way to achieve the goal of “carbon neutrality” is to research efficient power systems and develop new alternative fuels. As the world’s largest product of chemicals, ammonia is a new renewable fuel with good combustion energy. It can be used as an alternative fuel to reduce carbon emissions because of its proven production process, low production and transportation costs, safe storage, the absence of carbon-containing compounds in its emissions, and its future recyclability. This paper firstly introduces the characteristics of ammonia fuel engine and its problems; then it summarizes the effects of various ammonia-blended fuels on the combustion and emission characteristics of the engine from the combustion problem of ammonia-blended engine; then the fuel storage of ammonia-blended hydrogen is discussed, the feasibility of hydrogen production instead of hydrogen storage is introduced.