Solid state enzymatic hydrolysis (SSEH) has many advantages, such as higher sugar concentration, lower operating costs, and less energy input. It should be a potential approach for the industrial application of lignocellulosic ethanol. The purpose of this work is to review the enzymatic hydrolysis of lignocellulosic biomass from low to high solids loading and introduce its both challenges and perspectives. The limitations of SSEH, including inhibition effects, water constraint, and rheology characteristic, are summarized firstly. Various strategies for overcoming these limitations are proposed correspondingly. Fed batch process and its feeding strategy to improve the SSEH efficiency are then discussed. Finally, several intensification-methods, hydrolysis reactor, and pilot-and demonstration-scale operations of SSEH are described. In-depth analysis of main limitations and development of novel intensification methods and reactors should provide an effective way to achieve large-scale implementation of SSEH.