The intensification of energy demand, driven by the rapid exhaustion of fossil fuels, has propelled the research community towards renewable and sustainable sources of energy and storage systems. Utilizing the energy from these sources necessitates the use of storage devices, which poses a significant challenge. Supercapacitors, characterized by their high power density, long life cycle, ultrafast charging-discharging capabilities, and environmental friendliness, have garnered special attention among researchers. Despite these advantages, limitations in crucial factors like energy density and power density have prevented the commercialization of supercapacitors. However, considerable endeavors have been directed towards enhancing these parameters to fulfill the requirements of emerging electronic applications. Improving these parameters entails optimizing various components, including electrodes, electrolytes, current collectors, separators, and packaging parameters. This review stands out from previous supercapacitor reviews by extensively exploring charge storage mechanisms and summarizing recent advancements, particularly in electrode materials, including nanocomposites and heterostructures of transition metal oxides and chalcogenide derivatives. It also delves into emerging materials such as metal-organic frameworks and MXenes for supercapacitor applications. Interestingly, it examines the intricate relationship between surface area and electrochemical properties. Finally, the review discusses ongoing challenges and suggests future research directions. Overall, it serves as a comprehensive and forward-looking resource for advancing supercapacitor technology.