Magnetorheological(MR)fluids are one of the most valuable smart soft materials for vibration damper and shock absorber in a wide range of engineering applications because they change their viscoelastic properties when subjected to external magnetic fields. These fluids are prepared by dispersing the soft magnetic micro size particles in the nonmagnetic carrier oils, i.e., mineral oil (MO) and synthetic oil with stabilizing additives. The prominent feature of these fluids is their propensity to the reversible transformation from fluid to semi-solid-state and vice versa within milliseconds under the external magnetic field. The long-time stability and low magnetorheological effect are still considered as one of the most critical problems that need to be solved. There are many methods to resolve this problem, and many researchers are working to improve their stabilization and MR effect. This study reviews the prevalent stabilization techniques, different preparation methods and tribological behaviour of these fluids under an external magnetic field. Additionally, applications of magnetorheological fluid (MRF), rheologicalmodels, temperature dependency,current scenarios and future directions are also discussed.