Ascites due to liver cirrhosis is a common complication in patients with liver disease, severely affecting their prognosis and quality of life. Traditional treatment methods have significant limitations in managing ascites, highlighting the need for new therapeutic approaches. As an antidiuretic drug, terlipressin has shown good efficacy and potential in treating ascites. This review covers terlipressin’s application in managing ascites caused by liver cirrhosis, covering the mechanism of action, usage strategies, clinical effects, and potential side effects. Clinical trial results are discussed to provide a glimpse into the efficacy and safety of terlipressin in managing ascites and its side effects. Additionally, we provide detailed discussions on medication precautions and management strategies for adverse reactions in high-risk patients. Finally, this review outlines future research directions, such as new clinical trial designs, comparisons of terlipressin with other novel drugs, and the exploration of individualized treatment models. These efforts aim to provide references for clinical practice and promote further development in this field.