Separation by membranes in chemical and allied industries has been of prime importance in the last few decades because of its low energy requirement and environment friendly process. In the last two decades, there has been significant development of this novel separation technology in academic research and industrial applications. Several new membranes such as new kinds of thin film composite membranes, nanocomposite membranes, metal–organic framework membranes, mixed matrix membranes, polyelectrolyte membranes, graphene and carbon nanotube‐based membranes, polymer inclusion membranes, and new kinds of liquid membranes have been developed for applications in reverse osmosis, nanofiltration, ultrafiltration, microfiltration, pervaporation, gas separation or facilitated transport with liquid membranes. Membranes based on functional polymers and composites of polymer and ceramic materials have shown significant improvement in flux, selectivity, or salt rejection. This article discusses elaborately on the basic principles of membrane separation, types of membranes/modules, synthesis, and characterization of new membrane materials with citation of recent works on this novel separation process.