Viral latency remains one of the major barriers to the prevention and treatment of Human Immunodeficiency Virus (HIV) infection. Despite effective antiretroviral therapy (ART), HIV persists in latent cellular reservoirs, necessitating lifelong treatment and preventing complete viral eradication. This review comprehensively explores the molecular mechanisms underlying HIV latency, therapeutic barriers, and emerging opportunities toward a functional or sterilizing cure. HIV latency is regulated through complex interactions involving integration site heterogeneity, transcriptional repression, chromatin remodeling, and epigenetic modifications that collectively maintain viral dormancy. Resting CD4+ T cells serve as the principal latent reservoir; however, persistence also occurs within lymphoid tissues, gut-associated lymphoid tissues, and the central nervous system, creating sanctuary sites resistant to immune surveillance and pharmacological intervention. Current cure strategies include the “shock and kill” approach using latency-reversing agents such as histone deacetylase inhibitors, bromodomain inhibitors, and protein kinase C agonists, as well as the “block and lock” strategy employing Tat inhibitors and epigenetic silencing agents to achieve durable viral suppression. Immunotherapeutic approaches, including immune checkpoint inhibitors, chimeric antigen receptor T-cell therapy, and broadly neutralizing antibodies, have demonstrated promising potential but remain limited by incomplete reservoir clearance, toxicity, and viral escape. Clinical translation is further complicated by difficulties in reservoir quantification, ethical concerns, and implementation challenges in resource-limited settings. Emerging technologies, particularly artificial intelligence-assisted drug discovery and personalized therapeutic modeling, provide new opportunities for optimizing HIV cure strategies. Future progress will require interdisciplinary collaboration, equitable healthcare access, and innovative interventions targeting both viral persistence and host immune dynamics.