Today's competitive world economy is creating an indispensable demand for increased efficiency of engineering components that operate in harsh environments (i.e., very high-temperature, corrosive, or neutron irradiation environments), for applications in the energy, automotive, aerospace, electronics, and power industries. Increased research is being done on thermal barrier coatings (TBCs) for protecting such components, since the versatility of manufacturing techniques and the scale of deployment result in increased life, economics, performance, and durability. This review focuses on the advances that led to using TBCs for component life extension and, more recently, as an integral part of advanced component design for high-temperature and other types of harsh environments, such as those found in nuclear-related applications. Factors that led to state-of-the-art advanced coating-fabrication techniques [e.g., electron-beam physical vapor deposition (EB-PVD), plasma spray deposition, and electrophoretically deposited TBCs, as well as functionally graded material (FGM) manufacturing] have also been emphasized in current coating R&D. This review explores the current state of TBCs, i.e., the latest advances regarding their fabrication and performance, associated challenges, and recommendations for their future use in aerospace, nuclear, high-temperature, or otherwise harsh environments.