Polyacrylonitrile (PAN) fibers are essential precursors for high-performance carbon fibers, recognised for their significant carbon yield and mechanical strength. This review investigates the spinning methods of PAN fibers, focusing on wet spinning and dry-jet wet spinning, while utilising recent research to analyse their mechanisms, chemical characteristics, and results. Wet spinning facilitates controlled coagulation, producing fibers with minimal defects, whereas dry-jet wet spinning improves molecular alignment by introducing an air gap. Essential factors like polymer molecular weight, solvent selection, and coagulation bath composition significantly impact fiber characteristics. Developments such as adding various additives and electrochemical modifications enhance tensile strength and sustainability. Ongoing issues, including solvent recovery and process scalability, remain, with future efforts to incorporate eco-friendly solvents and advanced composite materials. This review consolidates insights to emphasise the best spinning conditions and new trends for producing high-performance PAN fibers.