Low-Impact Development (LID) represents a cogent strategy designed to conserve or reestablish antecedent hydrological states through an array of innovative mechanisms and methodologies. Since the dawn of the millennium, LID-centric research has demonstrated a persistent upward trajectory, mainly focusing on its capacity to mitigate climate change repercussions, particularly runoff and peak flows. However, a standardized rubric and toolkit for LID evaluation remain elusive. While numerous studies have documented the hydrological and water quality benefits of LID, the impacts of climate change on its effectiveness remain uncertain due to varying spatial and temporal climate patterns. This comprehensive review examined 1355 peer-reviewed articles in English, comprising both research articles and reviews, indexed in the Web of Science up until 2022. Findings from the bibliometric analysis revealed significant contributions and emergent trends in the field. Notably, there is an increasing emphasis on performance evaluation and efficiency of LID systems, and on understanding their impact on hydrology and water quality. However, this review identified the lack of a standardized LID evaluation framework and the uncertainty in LID effectiveness due to varying climate patterns. Furthermore, this study highlighted the urgent need for optimization of current hydrological models, advancement of LID optimization, modeling, monitoring, and performance, and stakeholder awareness about LID functionality. This review also underscored the potential future research trajectories, including the need to quantify LID’s effectiveness in urban flooding and water quality management and refining LID simulation models. Cumulatively, this review consolidates contemporaneous and prospective research breakthroughs in urban LID, serving as an indispensable compendium for academics and practitioners in the discipline.