This review describes the development history of group-III nitride light-emitting diodes (LEDs) for over 30 years, which has achieved brilliant achievements and changed people′s lifestyles. The development process of group-III nitride LEDs is the sum of challenges and solutions constantly encountered with shrinking size. Therefore, this paper uses these challenges and solutions as clues for review. It begins with reviewing the development of group-III nitride materials and substrates. On this basis, some key technological breakthroughs in the development of group-III nitride LEDs are reviewed, mainly including substrate pretreatment and p-type doping in material growth, the proposal of new device structures such as nano-LED and quantum dot (QD) LED, and the improvement in luminous efficiency, from the initial challenge of high-efficiency blue luminescence to current challenge of high-efficiency ultraviolet (UV) and red luminescence. Then, the development of micro-LEDs based on group-III nitride LEDs is reviewed in detail. As a new type of display device, micro-LED has drawn a great deal of attention and has become a research hotspot in the current international display area. Finally, based on micro-LEDs, the development trend of nano-LEDs is proposed, which is greener and energy-saving and is expected to become a new star in the future display field.