Digital image correlation (DIC) is a powerful technique for determining material deformation and damage and currently is viewed as a potential method to study failure and crack propagation in advanced composite materials. Case studies in concrete, epoxy adhesives, and carbon/epoxy laminates demonstrate the effectiveness of the DIC technique in visualizing crack propagation. This review highlights the applications, challenges, and implementation of the DIC technique in the failure and crack propagation of fibre-reinforced polymer (FRP) composites. The important factors such as field of view, speckle pattern, and algorithm choice are discussed while emphasizing the need for careful selection and calibration. The review concludes by highlighting the significance of crack propagation studies for composite behaviour and the role of DIC in calibrating and validating models of composite failure analysis. Future research directions include investigating mixed-mode delamination, improving calibration procedures, assessing DIC accuracy for large deformations, and comparing different DIC algorithms, which are discussed.