The current mobility situation is constantly changing as people are increasingly moving to urban areas. Therefore, a flexible mode of transport with high-capacity passenger trains and a high degree of modularity in the trains’ composition is necessary. Virtual coupling (VC) is a promising solution to this problem because it significantly increases the capacity of a line and provides a more flexible mode of operation than conventional signaling systems. This novel review, in which approximately 200 papers were analyzed, identifies the main topics of current railway-related VC research, and represents the first step toward the implementation of VC in future railways. It was found that industry research has mainly focused on the feasibility of VC implementation and operation, whereas in academia, which is coordinated with industry, research has focused on control and communication systems. From a technological perspective, the main challenges for VC were identified with regard to aspects such as safety, control technology, interlocking, vehicle-to-vehicle communication, cooperative train protection and control, and integrated traffic management. The important directions for future research that have been identified for future development include complete dynamic models, real-time controllers, reliable and secure communication, different communication topologies, cybersecurity, intelligent control, reinforcement learning, and Big Data analytics.