With the increasing global demand for sustainable energy sources and the intermittent nature of renewable energy generation, effective energy storage systems have become essential for grid stability and reliability. This paper presents a comprehensive review of pumped hydro storage (PHS) systems, a proven and mature technology that has garnered significant interest in recent years. The study covers the fundamental principles, design considerations, and various configurations of PHS systems, including open-loop, closed-loop, and hybrid designs. Furthermore, the review highlights the crucial role of PHS systems in integrating renewable energy sources, mitigating peak load demands, and enhancing grid stability. An in-depth analysis of current and emerging trends, technical challenges, environmental impacts, and cost-effectiveness is also provided to identify potential areas for future research and development. The paper concludes by offering a perspective on the challenges and opportunities that PHS systems present, underlining their potential to significantly contribute to a sustainable and reliable energy future.