Thin-film nanocomposite (TFN) membranes have been widely investigated for water treatment applications due to their promising performance in terms of flux, salt rejection, and their antifouling properties. This review article provides an overview of the TFN membrane characterization and performance. It presents different characterization techniques that have been used to analyze these membranes and the nanofillers within them. The techniques comprise structural and elemental analysis, surface and morphology analysis, compositional analysis, and mechanical properties. Additionally, the fundamentals of membrane preparation are also presented, together with a classification of nanofillers that have been used so far. The potential of TFN membranes to address water scarcity and pollution challenges is significant. This review also lists examples of effective TFN membrane applications for water treatment. These include enhanced flux, enhanced salt rejection, antifouling, chlorine resistance, antimicrobial properties, thermal stability, and dye removal. The article concludes with a synopsis of the current status of TFN membranes and future perspectives.