Domestic dogs play many vital roles in human lives; however, relatively little is known about how they perceive the world visually. Given dogs’ recent popularity as a subject in cognitive and behavioural studies, it is important to understand how they visually interpret the world around them. One way to evaluate perception is to assess illusion susceptibility; specifically, how visual information is processed, interpreted and modified post‐retinally. While illusion susceptibility has been used across a variety of species to comparatively assess the similarities and differences in visual processing and perception, this relatively novel methodological approach has only recently been adapted to evaluate perception in domestic dogs. Here, we present a comprehensive overview of the findings from studies that have evaluated domestic dogs’ illusion susceptibility, highlighting the relevance of these results for those studying illusion susceptibility in animals as well as canine behaviour and cognition. More specifically, the ultimate goal of this review is to answer the questions: (a) Are dogs susceptible to visual illusions? (b) If so, are they susceptible to illusions in a way that parallels humans and/or other animals? (c) Are findings, within dogs, consistent and if not, how might these be interpreted and explained?