The phenomenon of snap-off during imbibition in porous media, a fundamental two-phase fluid flow phenomenon, plays a crucial role in both crude oil production and carbon dioxide (CO2) utilization and storage. In porous media where two phases coexist, the instability of the phase interface may give rise to various displacement phenomena, including pore–body filling, piston-like displacement, and snap-off. Snap-off, characterized by the generation of discrete liquid droplets or gas bubbles, assumes paramount significance. This study provides a comprehensive overview of snap-off mechanisms, influencing factors, and impacts. Snap-off initiation arises from variations in the curvature radius at the interface between two phases within narrow regions, primarily influenced by capillary pressure. It can be influenced by factors such as the characteristics of multiphase fluids, the wettability of porous media, as well as the pore–throat geometry and topology within porous media. In turn, snap-off exerts a discernible influence on the fluid dynamics within the porous medium, resulting in impacts that encompass unrecoverable oil droplet formation, the oil bridging effect, drainage–imbibition hysteresis, strong foam generation and transient/dynamic effects. Although the snap-off phenomenon exerts detrimental effects during the conventional waterflooding in oil production, its potential is harnessed for beneficial outcomes in CO2-EOR and CO2 storage. This study significantly advances our understanding of snap-off and its multifaceted roles in multiphase fluid dynamics, offering vital insights for the precise prediction of fluid flow behavior and strategic control. These valuable insights can serve as a theoretical foundation to guide our deliberate modulation of snap-off phenomena, aiming at optimizing oil-recovery processes and enhancing the safety and stability of CO2 storage.