Lightning strike events pose significant challenges to the structural integrity and performance of composite materials, particularly in aerospace, wind turbine blade, and infrastructure applications. Through a meticulous examination of the state-of-the-art methodologies of laboratory testing and damage predictive modeling, this review elucidates the role of simulated lightning strike tests in providing inputs required for damage modeling and experimental data for model validations. In addition, this review provides a holistic understanding of what is there, what are current issues, and what is still missing in both lightning strike testing and modeling to enable a robust and high-fidelity predictive capability, and challenges and future recommendations are also presented. The insights gleaned from this review are poised to catalyze advancements in the safety, reliability, and durability of composite materials under lightning strike conditions, as well as to facilitate the development of innovative lightning damage mitigation strategies.