Humans are able to learn to implement novel rules from instructions rapidly, which is termed "instruction-based learning" (IBL). This remarkable ability is very important in our daily life in both learning individually or working as a team, and almost every psychology experiment starts with instructing participants. Many recent progresses have been made in IBL research both psychologically and neuroscientifically. In this review, we discuss the role of language in IBL, the importance of the first trial performance in IBL, why IBL should be considered as a goal-directed behavior, intelligence and IBL, cognitive flexibility and IBL, how behaviorally relevant information is processed in the lateral prefrontal cortex (LPFC), how the lateral frontal cortex (LFC) networks work as a functional hierarchy during IBL, and the cortical and subcortical contributions to IBL. Finally, we develop a neural working model for IBL and provide some sensible directions for future research.