Decarbonization and sustainability are at the forefront of today's energy concerns, pushing the energy sector to transition from fossil fuels to environmentally friendly and sustainable resources. The volatility of the energy market demands careful consideration of new energy sources with a focus on long-term operations. A thorough evaluation of renewable energy resource technologies throughout their entire lifespan, from inception to end-of-life, is essential to understand their contribution to decarbonization. Among the promising alternatives, hydrogen-powered vehicles have garnered significant attention from original equipment manufacturers (OEMs) due to advancements in hydrogen energy utilization and its potential as a sustainable substitute for fossil fuels. The study has reviewed life cycle assessment (LCA) of hydrogen-powered vehicles to assess their potential as long-term solution to fossil fuel dominated automotive sector. Hydrogen vehicles can be powered either by internal combustion engines or by fuel cell technology. But, the environmental benefits of both technologies are closely tied to the methods of hydrogen production and the development of a robust hydrogen infrastructure. Moreover, resource consumptions, infrastructure requirement and greenhouse gas emissions are other key elements that have been considered for the assessment in this study. The study also identifies the potential hotspots to further reduce the impact of hydrogen value chain on environment and to enhance the sustainability. The study underscores the importance of examining the entire hydrogen value chain to understand its environmental impacts. By addressing each stage from raw material extraction to utilization, the stakeholders can identify and implement strategies to reduce these impacts and enhance sustainability. Through increased recycling, renewable energy integration, technological improvements and sustainable infrastructure development, hydrogen can become a key component in the evolution to a decarbonized sustainable future of energy.