Since the emergence of perovskite nanocrystal materials, they have captured the attention of the scientific world. Outstanding optoelectronic properties make them ideal materials for light-emitting and harvesting applications. Despite these advantages, they suffer from serious phase instability and remain highly sensitive to the external parameters. These parameters are not random and can be well correlated with the nature of materials. In many cases, the phase sensitivity can be used for different applications. Hence, understanding the chemistry behind this transformation is important to understand their synthesis, processing, and device fabrication. Considering its importance, this most critical issue of the phase sensitivity of perovskite nanocrystals is elaborated and correlated with their synthesis, purification, and harvesting. This Review provides state-of-the-art views on their current developments and future prospects.