Diffractive Optical Elements (DOEs) are indispensable tools across numerous technological domains due to their capacity to manipulate light with sophistication and versatility. Their compact dimensions, lightweight nature, and compatibility with diverse materials render DOEs as prime candidates for integration into various optical systems, spanning from consumer electronics to state‐of‐the‐art scientific devices. Thus, DOEs stand as essential catalysts in technological advancement, facilitating innovation and unlocking new applications across a broad spectrum of disciplines. In this comprehensive review paper, Numerous types of DOEs widely acknowledge for their efficacy in both free space optics and imaging applications are delved. Beyond mere enumeration, their practical applications, elucidating their transformative impact on these fields are carefully examined. Furthermore, the challenges encountered in their implementation are dissected, paving the way for insightful discussions on future trajectories and advancements.