Autoimmune hepatitis (AIH) is a multifaceted liver disorder characterized by immune-mediated inflammation, potentially leading to severe liver damage if left untreated. Despite an elusive etiology, it is believed to arise from a combination of genetic predisposition and environmental triggers. Classification efforts have delineated two main types based on autoantibody profiles, with genetic susceptibility in the human leukocyte antigen (HLA) region and environmental factors. AIH presents with a diverse clinical phenotype, ranging from asymptomatic cases to fulminant hepatitis leading to liver failure. Diagnosis relies on a combination of clinical, biochemical, serological, and histological criteria, with liver biopsy playing a pivotal role. Autoantibodies such as ANA and ASMA aid in diagnosis, while characteristic features such as interface hepatitis are discernible on liver histology. Animal models serve as indispensable tools in unraveling the pathogenic processes and immunology of AIH. Spontaneous and induced models provide valuable insights into T cell activation, hepatic damage, and the mechanisms underlying AIH. These models offer promising avenues for studying potential treatment targets and advancing therapeutic strategies for AIH. The management of AIH poses challenges due to the chronic nature of the disease and potential adverse effects of medications. Treatment strategies involve a balance between immunosuppression and minimizing drug-related complications. Liver transplantation may become necessary in a small percentage of cases, with regular monitoring playing a crucial role in evaluating treatment efficacy and adjusting therapy. This review provides a comprehensive examination of AIH, exploring its immunological mechanisms, clinical presentations, diagnostic criteria, animal modeling approaches, and recent therapeutic advancements.