Ferroelectric materials, a non-centrosymmetric crystal system with switchable polarization characterization, are known to show multifunctional application potential in various fields. Among them, the ferroelectric photovoltaic phenomenon, which is known for several decades, is finding renewed interest in recent times due to its anomalous photovoltaic characteristics along with the reported efficiency exceeding Shockley–Queisser limit in the nanoscale region. Importantly, the mechanism involved in the ferroelectric photovoltaic effect is particularly different from the conventional photovoltaic effect exhibited by the semiconductor p–n junction solar cell. The observed above bandgap photovoltage in the ferroelectric system, and the versatility in their tunable physical characteristics makes them as one of the next generation photovoltaic materials both in terms of fundamental and technological research. However, the biggest barrier in developing the ferroelectric photovoltaic solar cell is their very low photocurrent response, which could be surmounted by bandgap engineering, surface charge manipulation, interface control, electrode effect etc. Interestingly, the photovoltaic response coupled with other physical phenomena such as piezoelectric and flexoelectric effects gives additional momentum to the continuing research on ferroelectric photovoltaic effect. In this article, the detailed understanding associated with various proposed mechanisms, recent progress on the improvement in ferroelectric photovoltaic parameters, photovoltaic phenomenon coupling with other fascinating effects exhibited by ferroelectric systems are described from the fundamental to application point of view.