The direct methanol fuel cell (DMFC) has been discussed recently as an interesting option for a fuel-cell-based mobile power supply system in the power range from a few watts to several hundred kilowatts. In contrast to the favoured hydrogen-fed fuel cell systems (e.g. the polymer electrolyte membrane fuel cell, PEMFC), the DMFC has some significant advantages. It uses a fuel which is, compared to hydrogen, easy to handle and to distribute. It also comprises a fairly simple system design compared to systems utilising liquid fuels (like methanol) to produce hydrogen from them by steam reforming or partial oxidation to filially feed a standard PEMFC. Nevertheless. many severe problems still exist for the DMFC, hindering its competitiveness as an option to hydrogen-fed fuel cells. This work reviews the major research activities concerned with the DMFC by highlighting the problems (slow kinetics of the anodic methanol oxidation, methanol permeation through the membrane, carbon dioxide evolution at the anode) and their possible solutions. Special attention is devoted to the steady state and dynamic simulation of these fuel cell systems.