Nonfullerene acceptors (NFAs) are regarded as star candidates for efficient organic solar cells with power conversion efficiency (PCE) over 18%. In contrast to the rapid development of NFA materials, however, the underlying excited-state dynamics which fundamentally govern the device performance remains unclear. In this Perspective, we discuss recent advances and provide our insights on photoinduced charge transfer and combination dynamics in NFA-based organic solar cells (OSCs), including the biphasic hole-transfer process and its correlation with morphology, the role of driving force and Marcus normal region behavior on interfacial hole-transfer properties, and charge recombination energy loss by NFA triplet formation. We also discuss our understanding of how to control the charge-transfer and recombination processes by phase morphology and molecular design to improve OSC performance. Finally, we suggest a few research directions, including the interfacial charge transfer and separation mechanism, the origin of low fill factor, and complex excited-state dynamics in multicomponent OSCs.