We reviewed current challenges and future research directions for aflatoxin degradation based on the existing body of work. The objective of providing this information was to deepen researchers’ comprehension of aflatoxin degradation, address present limitations, and promote progress in aflatoxin detoxification methods. Aflatoxins, the most potent naturally occurring mycotoxins identified to date, pose a significant threat to global food safety and international trade, particularly in developing nations. Finding effective detoxification procedures has consistently ranked among the most important concerns worldwide. Among established approaches, physical methods have emerged as the foremost effective in aflatoxin degradation, capable of inducing their rapid and irreversible denaturation. This review provides a concise overview of aflatoxin detection techniques and the structural analysis of degradation products. It also highlights four key aflatoxin safety evaluation methods and assesses the toxicity of degradation products, and provides an update on research developments in aflatoxin decontamination over the past decade. Furthermore, we examine recent applications, mechanisms, and outcomes of physical techniques for aflatoxin decontamination, including microwave heating, irradiation, pulsed light, cold plasma, and ultrasound, offering a detailed analysis of each approach. Regulatory considerations regarding the concept of ‘detoxification’ are also discussed.