Produced water is a major byproduct in oil production and the largest waste stream generated in the petroleum industry. At the Norwegian Continental Shelf, produced water is still mostly discharged to the sea, but some installations re-inject produced water into the reservoir for pressure support or disposal. Gas flotation is a separation technology widely used both onshore and offshore that generally reduces the oil concentration to <25 ppmv. It is also a promising technology for subsea water treatment. The aim of this review is to give an overview and provide a link between the industrial use and the fundamental aspects of gas flotation. The industrial analysis examines the development and design of gas flotation technologies: induced, dissolved, and compact flotation units. Several aspects of subsea water separation are also discussed. The fundamental aspects are dedicated to the fluid dynamics of bubble−droplet collisions and the phenomena involved after their encounter, i.e., film drainage, forces involved in this process, and spreading of oil on the surface of gas bubbles. Moreover, a detailed analysis of parameters that can affect gas flotation, like gas bubble and oil droplet sizes, droplet−bubble attachment mechanisms, interfacial properties, water composition, oil and gas properties, pressure, and temperature, is provided.