Hydrogen sulfide (H₂S) is highly toxic and one of the problematic impurities in industrial gas streams, calling for H₂S removal down to single-digit ppm levels to protect health and environment, and not to harm to the downstream processes. Here, we discuss the recent developments and challenges of current H₂S removal technologies. Furthermore, we present a comprehensive review of H₂S removal in ionic liquids (ILs), IL-based solvents/adsorbents/membranes, and deep eutectic solvents (DESs) due to their unique advantages. We analyze theoretical studies to better understand the microscopic details behind H₂S removal. We discuss new research on IL/DES-based H₂S removal processes from an industrial perspective. Finally, we summarize the utilization of H₂S in IL/DES-based systems for the recovery of sulfur and hydrogen, and synthesis of value-added chemicals. This review will provide both general and in-depth knowledge of the achievements, difficulties, and research priorities in developing novel ILs/DESs for efficient and sustainable H₂S removal and utilization.