Red mud (RM) is a by-product of extracting of alumina from bauxite. Red mud contains high quantities of alkali-generating minerals and metal ions, which can cause significant environmental damage. Many valuable components such as rare-earth elements, Al, and Fe, in RM are difficult to be utilized owing to their particle size and alkalinity. Thus, developing an economical and efficient technology to consume a large amount of RM can efficiently solve RM disposal issues. This paper systematically reviews the comprehensive utilization methods for reducing RM environmental pollution and divides the comprehensive utilization of RM into three aspects: the effective extraction of valuable components, resource transformation, and environmental application. Based on resource, economic, and environmental benefits, the development of new technologies and new processes with market competitiveness, environmental protection, and ecological balance should be the prerequisite for the low-energy, low-pollution, low-cost, and high-efficiency comprehensive utilization of RM. The direction of future research to solve RM disposal issues is also suggested.