This review presents the development of highly reactive polyisobutylene (HRPIB), a major commercial intermediate toward fuel and lubricant additives. Recent years have witnessed very substantial advances in the catalytic chain transfer polymerization (CCTP) of isobutylene/industrial Raffinate-1 (C4 Raffinate) to produce HRPIB, particularly in nonpolar solvents at elevated temperatures. The main subjects of this review are cationic polymerization of isobutylene, progress in HRPIB research and existing challenges, and recent advances of CCTP. New initiating/catalyst systems based on ionic liquids with Lewis acids are detailed, and this approach may open new views in the synthesis of HRPIB. Some current developments in CCTP of industrial Raffinate-1 and mechanistic studies are also described. This review strongly supports that the hydrocarbon soluble Lewis acid路ether (LA路ether) complex catalyzed CCTP will become the most popular technique for preparing HRPIB and could replace the traditional BF₃ catalyzed industrial method.