Baddeleyite (ZrO₂) is an important Zr-bearing mineral in lunar mafic-ultramafic rocks. Owing to its high uranium content, low initial lead, and high U-Pb closure temperature, this mineral serves as a unique chronometer for constraining the timing of lunar magmatic and impact events. This paper reviews recent advances in the study of lunar baddeleyite, focusing on its major formation mechanisms (magmatic crystallization, zircon decomposition, and tranquillityite decomposition) and corresponding morphological features. This paper further discusses how phase transformations recorded in baddeleyite can be used to infer high-temperature and high-pressure events, and summarizes its key contributions to constraining the formation of the lunar crust, mare volcanism, and large-scale impact events. Finally, this review highlights existing challenges in thermodynamic constraints, micro-scale element migration, and U-Pb system complexity in the study of lunar baddeleyite, and outlines future research directions combining high-resolution microanalytical and experimental approaches.