Underwater simultaneous localization and mapping (SLAM) has significant challenges due to the complexities of underwater environments, marked by limited visibility, variable conditions, and restricted global positioning system (GPS) availability. This study provides a comprehensive analysis of sensor fusion techniques in underwater SLAM, highlighting the amalgamation of proprioceptive and exteroceptive sensors to improve UUV navigational accuracy and system resilience. Essential sensor applications, including inertial measurement units (IMUs), Doppler velocity logs (DVLs), cameras, sonar, and LiDAR (light detection and ranging), are examined for their contributions to navigation and perception. Fusion methodologies, such as Kalman filters, particle filters, and graph-based SLAM, are evaluated for their benefits, limitations, and computational demands. Additionally, innovative technologies like quantum sensors and AI-driven filtering techniques are examined for their potential to enhance SLAM precision and adaptability. Case studies demonstrate practical applications, analyzing the compromises between accuracy, computational requirements, and adaptability to environmental changes. This paper proceeds to emphasize future directions, stressing the need for advanced filtering and machine learning to address sensor drift, noise, and environmental unpredictability, hence improving autonomous underwater navigation through reliable sensor fusion.