Annual killifish could survive as diapaused embryos buried in soil during dry seasons. When the embryos in diapause III were incubated in water, the larvae could be hatched quickly. However, the mechanism of diapause and hatching of annual killifish was ambiguous. In the present study, Nothobranchius guentheri were used as the model to clarify the physiological mechanism of diapause and hatching of annual killifish. The results indicated that incubation with water could significantly enhance the heart rate and blood circulation of embryos. To clarify the molecular mechanism, the transcriptomic analysis was used to compare the embryos in diapause I, diapause III, and hatching period. The results showed that DNA replication-related genes, cell division cycle 45 and proliferating cell nuclear antigen were more highly expressed in diapause I compared to diapause III. In addition, the transcript levels of glucagon, glucokinase and phosphofructokinase were more abundantly detected in hatching period compared to diapause III, but insulin receptor and insulin-like growth factor-binding protein were lower. These results indicated glucose metabolism might play an important role in diapause and hatching of killifish. To further confirm this result, several reagents involved in glucose metabolism were used to incubate embryos in diapause III. The results displayed that glucose and glucagon could both shorten the hatching time of embryos. In contrast, 2-deoxy-d-glucose, metformin, and insulin could prolong the hatching time and reduce the hatching rate. The results further confirmed that glucose metabolism played an important role in the diapause and hatching of annual killifish.