Distillation is widely recognized as the preferred method for separation due to its operational and control benefits. Traditional distillation processes, however, cannot successfully separate azeotropic mixtures with near boiling points. Numerous special distillation processes have been developed to address this limitation. Extractive distillation, in particular, has gained significant popularity in the chemical, petrochemical, pharmaceutical, and refining industries. This review examines the state-of-the-art advances in extractive distillation. The importance of the proper selection of a solvent was discussed. Several configurations of extractive distillation processes were presented. Additionally, alternative extractive distillation systems have been elaborated. However, significant research gaps remain, such as the need for an exhaustive investigation of various control variables, the impact of certain entrainers on distillation processes, and cost comparisons across specialized distillation systems. Furthermore, process intensification strategies require additional research to solve complexity and operability issues. The integration of energy-efficient technologies, developments in renewable energy consumption, and the development of cost-effective reactive or split distillation columns will shape the future of distillation operations. These advances will help the chemical process sector achieve improved energy efficiency, lower environmental impact, and increased sustainability.