Free space optical (FSO) communications has garnered significant attention as a potential substitute for radio frequency (RF) wireless communication in short and long range transmissions. Free-space optical (FSO) communication is a method where an optical beam is sent across an unguided channel, gaining favour in high-speed wireless networks due to its large optical bandwidth, fast data transmission, lack of licencing requirements, secure nature, and easy setup. Despite several inherent advantages that FSO has over existing radio frequency (RF) communication technologies, its link performance is severely hampered by atmospheric fog and turbulence, which not only reduce optical irradiance but also cause the modulated optical beam to deviate from its intended path, impacting the quality of the received signal. This review paper discusses FSO technology, channel impairments under varied atmospheric attenuation conditions, advantages, and applications. Various channel models in terms of probability density functions are described, which characterise the statistical nature of the irradiance fluctuations of optical transmission through scattering and atmospheric turbulence. Key objectives that need to be addressed in the near future, particularly in fifth-generation (5G) and beyond, includes enhancing capacity, boosting data rates, minimising latency, and enhancing service quality. Last but not the least, several uses of FSO that facilitates 5G and future technologies have also been covered in this study.