Beyond conventional electrocatalyst engineering, recent studies have unveiled the effectiveness of manipulating the local reaction environment in enhancing the performance of electrocatalytic reactions. The general principles and strategies of local environmental engineering for different electrocatalytic processes have been extensively investigated. This review provides a critical appraisal of the recent advancements in local reaction environment engineering, aiming to comprehensively assess this emerging field. It presents the interactions among surface structure, ions distribution and local electric field in relation to the local reaction environment. Useful protocols such as the interfacial reactant concentration, mass transport rate, adsorption/desorption behaviors, and binding energy are in-depth discussed toward modifying the local reaction environment. Meanwhile, electrode physical structures and reaction cell configurations are viable optimization methods in engineering local reaction environments. In combination with operando investigation techniques, we conclude that rational modifications of the local reaction environment can significantly enhance various electrocatalytic processes by optimizing the thermodynamic and kinetic properties of the reaction interface. We also outline future research directions to attain a comprehensive understanding and effective modulation of the local reaction environment.