The importance of membrane technology development in our daily life cannot be overemphasized. Over the past decades, membrane technology has become very popular in providing potable water for mankind. However, old technologies (such as reverse osmosis and ultrafiltration) which are highly energy intensive are still very common in water treatment industries. In this review work, the capability of low energy consumption membrane distillation (MD) technology was reviewed with emphasis on material development and energy requirement. We began by reviewing the history of MD process, configurations, module types, membrane materials, material fabrication methods, material properties, material modification techniques, application, and energy requirement. Factors which influence the performance of MD–both design and operating conditions–were then extensively discussed. Furthermore, we report desalination and wastewater treatment as the hottest areas of application where MD has gained significant interest. Membrane hydrophobicity and fouling resistance as pivotal areas where improvement in MD performance is being sought after are identified. Finally, we discussed various industries where MD is presently being applied. We conclude by highlighting the energy requirements of MD and identified solar energy as a renewable energy resource which could meet the energy requirement of MD technology. This review paper is believed to foster the interest and provide insights on material development for membrane distillation application.