The type IV hydrogen storage tank with a polymer liner is a promising storage solution for fuel cell electric vehicles (FCEVs). The polymer liner reduces the weight and improves the storage density of tanks. However, hydrogen commonly permeates through the liner, especially at high pressure. If there is rapid decompression, damage may occur due to the internal hydrogen concentration, as the concentration inside creates the pressure difference. Thus, a comprehensive understanding of the decompression damage is significant for the development of a suitable liner material and the commercialization of the type IV hydrogen storage tank. This study discusses the decompression damage mechanism of the polymer liner, which includes damage characterizations and evaluations, influential factors, and damage prediction. Finally, some future research directions are proposed to further investigate and optimize tanks.