This paper presents a review of isolated matrix inverters. The study contributes to creating a point of reference for a comprehensive classification of existing solutions. Over 30 topologies were reviewed, and the main advantages and disadvantages discussed. Applications of isolated matrix inverters are summarized in a tabular form to demonstrate their flexibility for different power and voltage levels achieved due to the presence of a transformer. These inverters have been proposed for the uninterruptible power supplies, high and low-voltage/power photovoltaic systems, low-power fuel cell, different low- and high-voltage battery and/or electric vehicle chargers, audio amplifiers. The fully controlled switches on both terminals of these converters typically can provide the bidirectional power transfer capability, which is also addressed for most of the topologies, but requires some modification in their modulation strategy. Average efficiency of today’s isolated matrix inverters is comparable with the two-stage power converters; however, they can provide higher reliability and lower cost.