The ongoing push for miniaturization and increased computational power in electronic devices has intensified thermal management challenges, especially in harsh environments with extreme heat, moisture, vapour, dust, and vibration. This paper provides a comprehensive analysis of both direct and indirect cooling methods, focusing on heat transfer efficiency, optimization techniques, and practical applications. It emphasizes the critical importance of thermal management for maintaining the performance, reliability, and durability of electronic systems under tough conditions. The review explores advanced materials and cooling technologies, including the role of Thermal Interface Materials (TIMs) in prolonging the lifespan of Integrated Circuits (ICs) and the use of Phase Change Materials (PCMs) in substrate boards for versatile thermal management. It also discusses the effectiveness of Liquid Cold Plates for battery module thermal management and the potential of micro-channel liquid cooling systems in Switching Mode Power Supplies (SMPS) boards. By offering detailed insights into thermal design principles, the paper guides engineers in optimizing IC chip placement and improving system reliability. Additionally, it examines the evolution of traditional cooling methods, the rise of innovative techniques like thermoelectric cooling, and the impact of advancements in materials, design, and manufacturing on energy efficiency and environmental sustainability. The review highlights promising research areas and emerging technologies, contributing to the development of more efficient, reliable, and eco-friendly cooling solutions for extreme environments.