Dissimilar metal joints, particularly those involving aluminum and iron (Al–Fe), are widely employed in engineering due to their exceptional mechanical properties and unique microstructures. The purpose of this literature review is to assess the extent and depth of research related to dissimilar metal joint research, with a specific focus on microstructure analysis and the reported findings. The review identified three key themes for improving the quality of these joints: welding techniques, parametric optimization, and material treatment. Three themes were identified, namely, the welding techniques (i.e., Friction Stir Welding, TIG-MIG Hybrid welding, etc.), parameter optimization (e.g., Taguchi method, Response Surface Method etc.), and the material treatment (pre-heating, Backing Plate, etc.). This systematic and comprehensive literature review highlights the importance of microstructural analysis in Dissimilar Metal Joint research, providing a foundation for understanding the nuances of different welding methods and their effects on joint quality. Additionally, strategies to mitigate the challenges posed by thick Fe2Al5 formation are discussed, ultimately contributing to advancements in dissimilar material joint technology and joint strength enhancement.