Improvements in feed efficiency of beef cattle have the potential to increase producer profitability and simultaneously lower the environmental footprint of beef production. Although there are many different approaches to measuring feed efficiency, residual feed intake (RFI) has increasingly become the measure of choice. Defined as the difference between an animal’s actual and predicted feed intake (based on weight and growth), RFI is conceptually independent of growth and body size. In addition, other measurable traits related to energy expenditure such as estimates of body composition can be included in the calculation of RFI to also force independence from these traits. Feed efficiency is a multifactorial and complex trait in beef cattle and inter-animal variation stems from the interaction of many biological processes influenced, in turn, by physiological status and management regimen. Thus, the purpose of this review was to summarise and interpret current published knowledge and provide insight into research areas worthy of further investigation. Indeed, where sufficient suitable reports exist, meta-analyses were conducted in order to mitigate ambiguity between studies in particular. We have identified a paucity of information on the contribution of key biological processes, including appetite regulation, post-ruminal nutrient absorption, and cellular energetics and metabolism to the efficiency of feed utilisation in cattle. In addition, insufficient information exists on the relationship between RFI status and productivity-related traits at pasture, a concept critical to the overall lifecycle of beef production systems. Overall, published data on the effect of RFI status on both terminal and maternal traits, coupled with the moderate repeatability and heritability of the trait, suggest that breeding for improved RFI, as part of a multi-trait selection index, is both possible and cumulative, with benefits evident throughout the production cycle. Although the advent of genomic selection, with associated improved prediction accuracy, will expedite the introgression of elite genetics for feed efficiency within beef cattle populations, there are challenges associated with this approach which may, in the long-term, be overcome by increased international collaborative effort but, in the short term, will not obviate the on-going requirement for accurate measurement of the primary phenotype.