Ionic liquids have been identified as a new class of solvent that offers opportunities to move away from the traditional solvents. The physical-chemical properties of ionic liquids can be tuned and controlled by tailoring their structures. The typical properties of ionic liquids, such as non-volatility, electrochemical stability and high conductivity, render them attractive as electrolytes for dye-sensitized solar cells. However, the high viscosity of ionic liquids leads to mass transport limitations on the photocurrents in the solar cells at full sunlight intensity, but the contribution of a Grotthous-type exchange mechanism in these viscous electrolytes helps to alleviate these diffusion problems. This article discusses recent developments in the field of high-performance dye-sensitized solar cells with ionic liquid-based electrolytes and their characterization by electrochemical impedance analysis.