Development of advanced energy-storage systems for portable devices, electric vehicles, and grid storage must fulfill several requirements: low-cost, long life, acceptable safety, high energy, high power, and environmental benignity. With these requirements, lithium-sulfur (Li-S) batteries promise great potential to be the next-generation high-energy system. However, the practicality of Li-S technology is hindered by technical obstacles, such as short shelf and cycle life and low sulfur content/loading, arising from the shuttling of polysulfide intermediates between the cathode and anode and the poor electronic conductivity of S and the discharge product Li2S. Much progress has been made during the past five years to circumvent these problems by employing sulfur-carbon or sulfur-polymer composite cathodes, novel cell configurations, and lithium-metal anode stabilization. This Progress Report highlights recent developments with special attention toward innovation in sulfur-encapsulation techniques, development of novel materials, and cell-component design. The scientific understanding and engineering concerns are discussed at the end in every developmental stage. The critical research directions needed and the remaining challenges to be addressed are summarized in the Conclusion.