In this study, hydrogen fuel and its advantages as well as hydrogen storage methods are introduced. Based on the investigations, using metal hydrides, especially magnesium hydride, is the most promising method for hydrogen storage. Magnesium hydride offers high storage capacity, light weight, low cost and high safety. In spite of these advantages, hydrogen release temperature is high and also desorbtion kinetic is slow for this material. Furthermore, magnesium hydride could easily be poisoned when exposed to oxygen. The mentioned problems have caused limitations in technical application of this material in hydrogen storage. In current study, methods to overcome these problems and to modify magnesium hydride properties are discussed.