Medical instrument detection is essential for computer-assisted interventions, since it facilitates clinicians to find instruments efficiently with a better interpretation, thereby improving clinical outcomes. This article reviews image-based medical instrument detection methods for ultrasound-guided (US-guided) operations. Literature is selected based on an exhaustive search in different sources, including Google Scholar, PubMed, and Scopus. We first discuss the key clinical applications of medical instrument detection in the US, including delivering regional anesthesia, biopsy taking, prostate brachytherapy, and catheterization. Then, we present a comprehensive review of instrument detection methodologies, including non-machine-learning and machine-learning methods. The conventional non-machine-learning methods were extensively studied before the era of machine learning methods. The principal issues and potential research directions for future studies are summarized for the computer-assisted intervention community. In conclusion, although promising results have been obtained by the current (non-) machine learning methods for different clinical applications, thorough clinical validations are still required.