Lithium-ion batteries are extensively employed in electric vehicles, energy storage power stations, and various other fields, attributed to their high energy density, prolonged life cycle, and low self-discharge rate. In recent years, safety incidents involving lithium-ion batteries have become frequent, particularly concerning the safety of batteries with high specific energy, which poses a critical bottleneck in their advancement. Key research areas—such as the thermal runaway mechanism, thermal runaway propagation characteristics, and strategies to inhibit thermal runaway propagation—are essential for enhancing battery safety. This paper discusses the chain of exothermic side reactions that lead to thermal runaway in lithium-ion batteries, resulting in heat generation, warming, gassing, and exhausting processes within the battery. It analyzes the heat propagation pathways in battery modules during thermal runaway, examines the impact of various factors—such as the mode of thermal runaway initiation, battery connection mode, battery arrangement, environmental conditions, cathode material, charge rate, battery spacing, and stage of charge—on the characteristics of thermal runaway propagation, and delves into strategies for inhibiting thermal runaway propagation—including air cooling, liquid cooling, plate cooling, submerged cooling, phase change materials, high thermal conductivity materials, thermal insulation materials, and combinations of multiple thermal management technologies. Furthermore, the paper provides insights and perspectives on the mechanisms, simulations, and inhibition strategies related to thermal runaway propagation in lithium-ion, which holds remarkable implications for advancing the safety of these batteries and promoting the development and application of electrochemical energy storage technology.