Ultrasonic ranging has been widely used in automobiles, unmanned aerial vehicles (UAVs), robots and other fields. With the appearance of micromachined ultrasonic transducers (MUTs), the application of ultrasonic ranging technology presents a more extensive trend. This review focuses on ultrasonic ranging technology and its development history and future trend. Going through the state-of-the-art ultrasonic ranging methods, this paper covers the principles of each method, the signal processing methodologies, the overall system performance as well as key ultrasonic transducer parameters. Moreover, the error sources and compensation methods of ultrasonic ranging systems are discussed. This review aims to give an overview of the ultrasonic ranging technology including its current development and challenges.