[Abstract] Chimeric antigen receptor natural killer (CAR-NK) cell therapy, as an emerging cellular immunotherapy strategy, has demonstrated a broader clinical application potential compared to CAR-T cell therapy due to its high safety profile and the unique advantages of 'off-the-shelf ' preparation. This article thoroughly discusses the antitumor mechanisms of CAR-NK cells, elucidating their targeted recognition mechanism, inherent cytotoxic activity, and the latest advancements in optimizing specific receptors to enhance their adaptability within the tumor microenvironment. Additionally, it provides an in-depth analysis of the advantages and challenges of various sources for CAR-NK cells, including peripheral blood, umbilical cord blood, induced pluripotent stem cells (iPSCs), and NK-92 cells, while summarizing their major challenges in the tumor immune microenvironment, such as insufficient persistence, immune suppression, and antigen heterogeneity. Finally, this article presents the therapeutic potential, limitations, and future perspectives of CAR-NK therapy in treating solid tumors, with a focus on its ongoing development and clinical translation.