This review examines the integration of remote sensing technologies and machine learning models for efficient monitoring and management of lake water quality. It critically evaluates the performance of various satellite platforms, including Landsat, Sentinel-2, MODIS, RapidEye, and Hyperion, in assessing key water quality parameters including chlorophyll-a (Chl-a), turbidity, and colored dissolved organic matter (CDOM). This review highlights the specific advantages of each satellite platform, considering factors like spatial and temporal resolution, spectral coverage, and the suitability of these platforms for different lake sizes and characteristics. In addition to remote sensing platforms, this paper explores the application of a wide range of machine learning models, from traditional linear and tree-based methods to more advanced deep learning techniques like convolutional neural networks (CNNs), recurrent neural networks (RNNs), and generative adversarial networks (GANs). These models are analyzed for their ability to handle the complexities inherent in remote sensing data, including high dimensionality, non-linear relationships, and the integration of multispectral and hyperspectral data. This review also discusses the effectiveness of these models in predicting various water quality parameters, offering insights into the most appropriate model–satellite combinations for different monitoring scenarios. Moreover, this paper identifies and discusses the key challenges associated with data quality, model interpretability, and integrating remote sensing imagery with machine learning models. It emphasizes the need for advancements in data fusion techniques, improved model generalizability, and the developing robust frameworks for integrating multi-source data. This review concludes by offering targeted recommendations for future research, highlighting the potential of interdisciplinary collaborations to enhance the application of these technologies in sustainable lake water quality management.