Abstract: Aiming to address issues such as low mechanization, poor peeling quality, and lack of evaluation standards for water chestnut peeling in China, this paper provides a comprehensive analysis of the physical characteristics of water chestnut and thoroughly explains three peeling technology evaluation indexes: the peeling rate, peeling loss, and peeling efficiency, as well as their calculation methods. This paper also systematically summarized the common water chestnut peeling technology and emerging peeling technologies both domestically and internationally in recent years. The main peeling technologies, such as chemical peeling, steam peeling, mechanical peeling, ultrasonic peeling, and infrared heating peeling, were emphasized. The advantages and disadvantages of various peeling technologies were analyzed, and the technical difficulties in the peeling process of water chestnuts, such as ripening, browning, and high peeling loss rate, were pointed out. In addition, future developments of water chestnut peeling technology, including combining multiple peeling technologies and extending the operation process, were proposed. These insights aim to provide a reference for the research of water chestnut peeling technology and inspire innovative designs of peeling machinery in China.