This review highlights the critical effects of heat transfer and bubble mass transfer in alkaline water electrolysis on hydrogen generation efficiency. To improve heat transfer performance, the study focuses on reducing electrical resistance and controlling the electrolysis system’s temperature. It proposes innovative strategies such as using metal matrix composites and catalysts to optimize electrode structure, precise temperature and pressure regulation and enhanced electrolyte concentration. Additionally, the study examines the dynamics of bubble mass transfer, proposing effective strategies to reduce bubble coverage, including hydrophilic electrodes, mechanically circulating the electrolyte and voltage smoothing with pressure swinging. This study contributes to the advancement of hydrogen energy technology with practical strategies. By adjusting the electrolysis system to optimize the combined effect of these factors, we can improve the efficiency, economy and environmental friendliness of hydrogen production. This will contribute to the transformation of the global energy mix and the implementation of sustainable development strategies.