The demand for novel, cost-effective, and environmentally friendly rare earth element and yttrium (REY) sources is essential. The recovery of REY and other valuable components from coal fly ash (CFA) may result in securing alternative resources, decreased disposal costs, and environmental protection, all of which may have positive effects. However, research on the recovery of REY from CFA is underway, and it is still necessary to assess its viability from an economic and environmental standpoint. The authors have reviewed some of the most recent advances in extracting rare earth elements from CFA. However, most techniques reported for the treatment of CFA are still at the laboratory scale. Nevertheless, there are several pathways for industrial-scale applications. Therefore, CFA treatment and the extraction of valuable products from it have considerable potential for reducing both its carbon footprint and environmental burden.