The combination of acidic zeolites and Fischer–Tropsch synthesis (FTS) catalysts for one-step production of liquid fuels from syngas is critically reviewed. Bifunctional systems are classified by the proximity between FTS and acid functionalities on three levels: reactor, catalyst particle, and active phase. A thorough analysis of the published literature on this topic reveals that efficiency in the production of liquid fuels correlates well with the proximity of FTS and acid sites. Moreover, possible side reactions over the FTS metal, including direct CO hydrogenation and hydrocarbon hydrogenolysis, are addressed. The contribution of these side reactions should carefully be considered and separated from that of the zeolite function when evaluating the performance and product spectrum of zeolite-containing catalysts.