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Thermally-induced phase separation (TIPS) is one of the most popular methods considered for membrane preparation. Since its introduction by Castro in 1981, there has been significant progress in understanding, controlling, and implementing TIPS. This review provides a critical and integrative evaluation of the literature in this area that effectively defines the current state-of-the-art. It begins with an overview of the basic principles of TIPS and the used materials (polymers, diluents and additives) paying particular attention to the sustainability of the TIPS process. The subsequent sections examine the parameters affecting the outcome of TIPS technique, the role of mass transfer, and methods for modeling TIPS. This is followed by a discussion of current and potential applications of TIPS membranes. Finally, the review concludes with a discussion of likely future developments and prospects for the TIPS process.