Gamma-aminobutyric acid (GABA) is a key neurotransmitter with significant health benefits, including anxiolytic and anti-hypertensive effects, and potential use in biodegradable material synthesis. The increasing market demand for GABA has intensified the search for cost-effective production methods. The key enzyme involved in GABA production is glutamate decarboxylase (GAD), which catalyzes the conversion of L-glutamate to GABA. GAD plays a central role in various production approaches, such as enzyme-based catalysis, whole-cell catalysis, and microbial fermentation. Although microbial GADs are preferred for their high catalytic activity, their low pH and thermal stability present significant challenges for large-scale GABA production. Wild-type GADs typically have an optimal pH range of 4-5, and their activity sharply declines as the pH increases, thereby reducing production efficiency. Furthermore, GADs' poor thermal stability makes them vulnerable to temperature fluctuations during industrial processes, further limiting GABA production. Recent research has focused on engineering GAD variants with improved stability and performance through rational design, directed evolution, and semi rational approaches. These advancements not only expand the potential applications of GAD in biocatalysis but also offer promising solutions for sustainable GABA production. This paper provides an in-depth review of the engineering of GADs, applications of GAD in GABA production, and strategies to overcome limitations, offering a comprehensive overview of the current state and future prospects of GAD modification in enhancing GABA production.