Modular construction is a novel technique that has several advantages over traditional construction methods; however, along with the benefits, there are limitations that make it challenging. Various aspects of modular construction need to be studied in-depth to improve the construction process, and the aim of this study was to accomplish that by investigating its advantages and limitations and comparing them with traditional construction. The advantages were identified through a thorough literature review, and were classified into five categories: project schedule, project cost, labor safety, project quality and productivity, and environmental. The limitations were also investigated through the existing literature and classified into five categories: project planning, transportation, public and expert acceptance, establishment cost and cost due to complexity, and coordination. The results revealed that the advantages of modular construction outnumber its limitations; however, further technological development and research would lessen or mitigate the challenges. The results of this study highlight the main benefits and challenges associated with modular construction and will help project stakeholders choose between this method and conventional construction methods for their projects.