As a result of growing concerns about global warming, hydrate‐based processing is becoming a promising technology for CO2 capture. This process captures CO2 by forming clathrate hydrates by exposing flue gas to water under suitable conditions. It results in high CO2 recovery due to its large gas‐storage capacity and the large concentration differences between the separation phases. However, the high cost of hydrate formation conditions is the main reason preventing this technology from wide industrial application. To address this issue, this paper explores the literature on the current status of developments in hydrate‐based CO2 capture and separation, focusing on methods to mitigate hydrate formation conditions and to improve phase‐contacting performance. In this review, various relevant aspects of CO2 capture and separation selectivity are summarized, including promoter selection, thermodynamic and kinetic model development, reactor configuration, and process design. Advantages and disadvantages of alternative processes are also discussed. Current studies are limited to laboratory experiments but low energy penalties and high CO2 selectivity features of hydrate processes will make future plant implementation feasible. © 2019 Society of Chemical Industry and John Wiley & Sons, Ltd.