Structural health monitoring (SHM) is critical to maintaining safe and reliable civil infrastructure, but the optimal design of an SHM sensing system, i.e., optimal sensor placement (OSP), remains a complex challenge. Based on the existing literature, this paper presents a comprehensive review of OSP strategies for SHM. It covers the key steps in OSP, from evaluation criteria to efficient optimization algorithms. The evaluation criteria are classified into six groups, while the optimization algorithms are roughly categorized into three classes. The advantages and disadvantages of each group of methods have been summarized, aiming to benefit the OSP strategy selection in future projects. Then, the real-world implementation of OSP on bridges, high-rise buildings, and other engineering structures, is presented. Based on the current progress, the challenges of OSP are recognized; its future development directions are recommended. This study equips researchers/practitioners with an integrated perspective on state-of-the-art OSP. By highlighting key developments, persistent challenges, and prospects, it is expected to bridge the gap between theory and practice.