Photon recycling (PR) plays an important role in the study of semiconductor materials and impacts the properties of their optoelectronic applications. However, PR has not been investigated comprehensively and it has not been demonstrated experimentally in many different kinds of semiconductor materials and devices. In this review paper, first, the authors introduce the background of PR and describe how this phenomenon was originally identified in semiconductors. Then, the theory and modelling of PR is reviewed and some of the important parameters that are used to quantify PR are highlighted. Next, a variety of the methods used to achieve and characterize PR in materials and devices are discussed. Examples of how the performance parameters of different types of optoelectronic devices are affected by PR are described. Finally, a summary of the roles of PR in semiconductor materials and devices and an outlook on how PR can be used to solve existing problems and challenges in the field of optoelectronics are provided. From this review, it is apparent that PR can have a positive impact on optoelectronic device performance, and that further in‐depth theoretical and experimental studies are needed to rigorously demonstrate the advantages and importance of PR.