Thermal stabilization of polyacrylonitrile (PAN) fibres is an essential step in the carbon fibre manufacturing process. The formation of radial heterogeneity in polyacrylonitrile precursor fibres in the thermal stabilization process is an important issue that is not well understood and needs to be addressed as it affects the quality of the resultant carbon fibres. Hence, in this review we put forward the recent developments on the evolution of radial heterogeneity in the PAN fibres during the thermal stabilization process.