The review emphasizes the importance of the petroleum refining industry in Iraq, highlighting the environmental obstacles it presents. The industry's significant role in the country's economy necessitates a crucial evaluation and improvement of the environmental impact of oil refining in Iraq. The study scrutinizes the progression of crude oil refining techniques, from basic distillation to advanced technologies like vacuum distillation, thermal cracking, and catalytic cracking, all of which are associated with environmental damage. The refining processes produce hazardous gases such as carbon dioxide, carbon monoxide, sulfur oxides, and nitrogen oxides. Refineries also consume substantial amounts of water and discharge effluent, causing environmental issues. It highlights that significant solid waste is produced throughout the refining process, contributing to the environmental difficulties caused by the petroleum industry in Iraq. The paper proposes several approaches to enhancing the environmental performance of Iraq's petroleum refining processes through a comprehensive environmental impact assessment, focusing on identifying problematic areas, measuring environmental damage, and proposing solutions. It provides insights into the types of waste generated in Iraqi refineries, such as polluted hydrocarbon liquids, and highlights the environmental impact of leaks and spills from oil and byproducts, affecting groundwater and soil quality. The paper suggests reusing consumable auxiliary agents and mineral elements in other industrial fields to minimize waste generation, as well as employing advanced technologies like artificial intelligence and machine learning for efficient refining processes and reduced effluents. By offering suggestions to policymakers, industry stakeholders, and environmental regulators in Iraq, the study aims to inform sustainable practices and environmental management strategies within the petroleum refining sector, contributing to improved environmental outcomes and sustainable development in the industry.