Organic gels obtained by sol–gel polycondensation reaction followed by subcritical drying in ambient conditions are termed as xerogels which are pyrolyzed to yield carbon xerogels. Resorcinol formaldehyde (RF) derived carbon xerogels have received considerable attention due to their higher carbon yield and ease of tuning their microstructure and therefore physiochemical properties. Recent advances in the synthesis of carbon xerogels have allowed porous as well as non-porous but large external surface area morphologies. Further efforts have been made about increasing the surface area by activation or changing the microstructure by doping with foreign elements. These advances in the area of carbon xerogels synthesis led to their use as high performance anode materials for Li ion batteries recently. This review summarizes these recent studies on electrochemical performance of carbon xerogels to clearly demonstrate their potential as high capacity anode material for Li ion batteries. Notably, given the potential not only for Li ion batteries but also for latest sodium-ion batteries and super-capacitors, this review provides a much needed attention of scientific community to so far unnoticed carbon xerogel materials.