According to the Consumer Financial Protection Bureau, about 40 percent of individuals had faced difficulty paying bills before the pandemic and the condition worsened during the pandemic. Recently household debt has increased to historically high levels and one of the reasons is that individuals are more financially fragile. In order to overcome this state of financial fragility, it is important to understand its meaning, definition, and its overall impact on one’s financial behavior. We discuss these details in this chapter by conducting a narrative literature review. Further, to take fruitful steps to eradicate financial fragility, we also review the literature on its conceptualization, antecedents, and consequences. Finally, we discuss future research directions and policy implications for financial fragility and its overall impact.