The development of catalytic materials for the efficient utilization of fundamental feedstocks into value-added products, along with hydrogen production, remains a vital and compelling area of research in the current landscape. Catalytic methane decomposition (CMD) offers a sustainable approach to carbon utilization and hydrogen production. This process transforms methane into valuable carbon-based materials, such as graphene, carbon nanotubes, and activated carbon, while concurrently generating hydrogen. This review article presents recent advancements in catalytic systems, focusing on metal-based and carbon-based catalysts for efficient methane cracking and reforming under mild conditions. It delves into the key factors affecting conversion efficiency and product selectivity, highlighting the dual benefits of simultaneous hydrogen production and carbon material synthesis. Additionally, the article addresses challenges related to catalyst stability, scalability, and economic viability, emphasizing strategies to advance sustainable methane-to-carbon conversion technologies. We strongly believe that the relatively unexplored area of methane valorization into solid carbon/carbonaceous materials with simultaneous hydrogen production holds great potential. It may pave the way for new advancements in materials science and sustainable catalysis, contributing to the design and development of innovative materials.