The petroleum industry produces a large amount of wastewater, known as produced water (PW), during oil production and processing. This PW contains hazardous organic and inorganic components that can harm the environment. Conventional treatment methods have been used to purify PW, but they do not meet environmental regulations, especially when the goal is to reuse the water. Therefore, further research is needed to find an effective technology for managing PW. This review focuses on the characteristics and management of PW originating from oil and gas fields. Firstly, we provide a detailed overview of PW production scenarios worldwide and in the US with detailed quantities and chemical compositions of organic, inorganic, and physicochemical characteristics. Secondly, challenges and environmental concerns associated with treating PW are discussed. Thirdly, all relevant treatment technologies for PW are systematically explored. In addition, this review highlights the management of PW and suggests treatment options and best practices for the industry, and finally, future research needs and opportunities for sustainable water treatment and effective reuse technologies are addressed. Because PW contains a variety of severe contaminants, single methods have not been effective in converting it to a reusable form or fulfilling disposal criteria. As a result, integrated technologies may provide a potential approach that not only meets regulatory standards but also provides chances to employ PW as a non-conventional water supply. Advances in PW management are critical and demand a defined framework and risk-based approach to determine and build the most efficient plan.