This paper summarizes the research progress and applications of oxygen-reduced-air-assisted gravity drainage (OAGD) in enhanced oil recovery (EOR). The fundamental principles and key technologies of OAGD are introduced, along with a review of domestic and international field trials. Factors influencing displacement performance, including low-temperature oxidation reactions, injection rates, and reservoir dip angles, are discussed in detail. The findings reveal that low-temperature oxidation significantly improves the recovery efficiency through the dynamic balance of light hydrocarbon volatilization and fuel deposition, coupled with the synergistic optimization of the reservoir temperature, pressure, and oxygen concentration. Proper control of the injection rate stabilizes the oil–gas interface, expands the swept volume, and delays gas channeling. High-dip reservoirs, benefiting from enhanced gravity segregation, demonstrate superior displacement efficiency. Finally, the paper highlights future directions, including the optimization of injection parameters, deepening studies on reservoir chemical reaction mechanisms, and integrating intelligent gas injection technologies to enhance the effectiveness and economic viability of OAGD in complex reservoirs.