Tannins are soluble, astringent secondary phenolic metabolites generally obtained from renewable natural resources, and can be found in many plant parts, such as fruits, stems, leaves, seeds, roots, buds, and tree barks, where they have a protective function against bacterial, fungal, and insect attacks. In general, tannins can be extracted using hot water or organic solvents from the bark, leaves, and stems of plants. Industrially, tannins are applied to produce adhesives, wood coatings, and other applications in the wood and polymer industries. In addition, tannins can also be used as a renewable and environmentally friendly material to manufacture bio-based polyurethanes (bio-PUs) to reduce or eliminate the toxicity of isocyanates used in their manufacture. Tannin-based bio-PUs can improve the mechanical and thermal properties of polymers used in the automotive, wood, and construction industries. The various uses of tannins need to be put into perspective with regards to possible further advances and future potential for value-added applications. Tannins are employed in a wide range of industrial applications, including the production of leather and wood adhesives, accounting for almost 90% of the global commercial tannin output. The shortage of natural resources, as well as the growing environmental concerns related to the reduction of harmful emissions of formaldehyde or isocyanates used in the production of polyurethanes, have driven the industrial and academic interest towards the development of tannin-based bio-PUs as sustainable alternative materials with satisfactory characteristics. The aim of the present review is to comprehensively summarize the current state of research in the field of development, characterization, and application of tannin-derived, bio-based polyurethane resins. The successful synthesis process of the tannin-based bio-PUs was characterized by Fourier-transform infrared spectroscopy (FTIR), differential scanning calorimetry (DSC), thermogravimetric analysis (TGA), MALDI-TOF mass spectrometry, and gel permeation chromatography (GPC) analyses.