Among the diverse challenges in machining processes, chatter has a significant detrimental effect on surface quality and tool life, and it is a major limitation factor in achieving higher material removal rate. Early detection of chatter occurrence is considered a key element in the milling process automation. Online detection of chatter onset has been continually investigated over several decades, along with the development of new signal processing and machining condition classification approaches. This paper presents a review of the literature on chatter detection in milling, providing a comprehensive analysis of the reported methods for sensing and testing parameter design, signal processing and various features proposed as chatter indicators. It discusses data-driven approaches, including the use of different techniques in the time–frequency domain, feature extraction, and machining condition classification. The review outlines the potential of using multiple sensors and information fusion with machine learning. To conclude, research trends, challenges and future perspectives are presented, with the recommendation to study the tool wear effects, and chatter detection at dissimilar milling conditions, while utilization of considerable large datasets—Big Data—under the Industry 4.0 framework and the development of machining Digital Twin capable of real-time chatter detection are considered as key enabling technologies for intelligent manufacturing.