Abstract: The coalescence of stellar-mass black holes embedded in active galactic nucleus (AGN) disks offers a unique channel for compact binary formation and a promising site for multimessenger astrophysics. Gas torques, migration traps, and disk-driven accretion can dramatically alter binary evolution, potentially enhancing merger rates relative to the field population. In this talk, I will discuss recent progress on the dynamical and hydrodynamical processes that govern black hole pairing and coalescence in AGN disks, emphasizing how disk environments shape mass ratios, spin alignments, and merger timescales. I will also explore potential electromagnetic (EM) counterparts arising from gas interactions before, during, and after merger, ranging from prompt flares to long lived afterglows. By connecting theoretical models with gravitational wave observations from LIGO–Virgo–KAGRA and forthcoming detections by LISA, I will highlight how AGN-assisted mergers could serve as key laboratories for studying black hole growth, accretion physics, and galaxy evolution.