Membrane fusion plays a fundamental role in various biological processes, such as endocytosis, exocytosis, neurotransmission, and viral infections. These processes involve a highly selective recognition mechanism controlled by functional proteins, which inspire the development of sensitive and selective biosensors and other biomedical devices. By mimicking the nature membrane fusion mechanism, various artificial membrane fusion systems have been developed. In particular, DNA‐mediated membrane fusion holds great potential for spatiotemporal control of fusion events owing to the inherent programmability of DNA hybridization. Moreover, the biocompatibility of DNA enables it possible in vivo applications. In this Review, we illustrate different anchoring strategies of DNA‐mediated membrane fusion and discuss several factors that affect fusion efficiency. Subsequently, we highlight the biosensing application of the DNA‐mediated membrane fusion. In addition, we outline the significant progress made in other biological applications, including nanoreactor construction, protocell communication and drug delivery. Finally, we present major challenges and opportunities for DNA‐mediated membrane fusion.