Plastic film mulching has been widely used to improve crop yield and water use efficiency, although the effects of plastic film mulching on water, heat, nitrogen dynamics, and crop growth are rarely presented comprehensively. This study investigated a large number of studies in film mulching fields from the past 10 years (mostly from 2019 to 2023) and summarized the impact of plastic film mulching, progress in modeling with film mulching, and future research directions. The effects of plastic film mulching were intricate and were influenced by film mulching methods, irrigation systems, crop types, crop growth stages, etc. Overall, plastic film mulching showed a positive effect on improving soil water, temperature, and nitrogen status, enhancing crop transpiration and photosynthetic rates, and promoting crop growth and yield, although film mulching may have negative effects, such as increasing rainfall interception, blocking water entering the soil, and reducing net radiation income. The crop yield and water use efficiency could increase by 39.9–84.7% and 45.3–106.4% under various film mulching methods. Coupled models of soil water and heat transport and crop growth under plastic film mulching conditions have been established by considering the effects of plastic film mulching on the upper boundary conditions of soil water and heat, energy budget and distribution processes, and the exchange of latent and sensible heat between soil and atmosphere. The models have good applicability in film mulched farmland of maize, rice, and potato for different regions of China. Further development is needed for soil water, heat, nitrogen migration, and crop growth models under different plastic film mulching methods, and the acquisition of soil and crop indicators under plastic film mulching conditions based on big data support. The study will provide reference for the subsequent development and innovation of plastic film mulching technology.