American chemist William Draper Harkins was the first to propose the concept of nuclear fusion in 1915. Then in 1921, Arthur Eddington suggested hydrogen–helium fusion could be the primary source of stellar energy. Quantum tunneling was discovered by Friedrich Hund in 1927, and shortly afterwards Robert Atkinson and Fritz Houtermans used the measured masses of light elements to demonstrate that large amounts of energy could be released by fusing small nuclei. Building on the early experiments in artificial nuclear transmutation by Patrick Blackett, laboratory fusion of hydrogen isotopes was accomplished by Mark Oliphant in 1932. In the remainder of that decade, the theory of the main cycle of nuclear fusion in stars was worked out by Hans Bethe.  Research into fusion for military purposes began in the early 1940s as part of the Manhattan Project. Self-sustaining nuclear fusion was first carried out on 1 November 1952, in the Ivy Mike hydrogen (thermonuclear) bomb test.
While fusion was achieved in the operation of the hydrogen bomb (H-bomb), the reaction must be controlled and sustained in order for it to be a useful energy source. Research into developing controlled fusion inside fusion reactors has been ongoing since the 1930s, but the technology is still in its developmental phase.
The US National Ignition Facility, which uses laser-driven inertial confinement fusion, was designed with a goal of break-even fusion; the first large-scale laser target experiments were performed in June 2009 and ignition experiments began in early 2011.  On 13 December 2022, the United States Department of Energy announced that on 5 December 2022, they had successfully accomplished break-even fusion, "delivering 2.05 megajoules (MJ) of energy to the target, resulting in 3.15 MJ of fusion energy output."
Prior to this breakthrough, controlled fusion reactions had been unable to produce break-even (self-sustaining) controlled fusion. The two most advanced approaches for it are magnetic confinement (toroid designs) and inertial confinement (laser designs). Workable designs for a toroidal reactor that theoretically will deliver ten times more fusion energy than the amount needed to heat plasma to the required temperatures are in development (see ITER). The ITER facility is expected to finish its construction phase in 2025. It will start commissioning the reactor that same year and initiate plasma experiments in 2025, but is not expected to begin full deuterium–tritium fusion until 2035.
Private companies pursuing the commercialization of nuclear fusion received $2.6 billion in private funding in 2021 alone, going to many notable startups including but not limited to Commonwealth Fusion Systems, Helion Energy Inc., General Fusion, TAE Technologies Inc. and Zap Energy Inc.