Autoimmune hepatitis (AIH) is an acute or chronic inflammatory disease of the liver caused by an unclear immune response that affects people from all ethnic groups irrespective of age or sex. It is characterized by hyperglobulinemia, circulating autoantibodies and liver inflammation. The clinical picture of the disease varies from asymptomatic and/or mild to severe acute hepatitis or liver failure. A timely and prompt diagnosis is of utmost importance to prevent progression to advanced liver disease by immediate initiation of immunosuppressive treatment. So far, several diagnosing scoring systems have incorporated the demographics, biochemical, clinical, and histological characteristics of the disease.However, due to the high heterogeneity of the disease presentation, AIH diagnosis remains challenging. Most patients initially respond to first-line treatment, which consists of corticosteroids combined with azathioprine while some authorities also suggest the use of mycophenolate mofetil instead. However, insufficient response and intolerance due to side effects are common, so a significant proportion of patients requires second-and/or third-line therapies. Herein, we review the challenges and recent advances in AIH diagnosis and management.