Rapid urbanization and higher thermal comfort requirements have sharply increased buildings' energy demands. In tropical countries, for achieving energy efficient air-conditioning, desiccant dehumidifiers, which decouple sensible and latent load, are essential. While fixed-bed and rotary wheel desiccant dehumidifiers suffer from reduced adsorption capacity and lowered heat transfer efficiencies, desiccant coated heat exchanger (DCHE) system is a promising technology that can improve the energy efficiency of the standard vapor-compression air conditioners. Moreover, DCHEs also have prospective benefits in heat pump, adsorption chiller, and atmospheric water harvesting applications. In this paper, the advantages of DCHEs over other dehumidifiers are established, and a comprehensive review of various desiccant materials and binders used in DCHEs is carried out. The possibilities of using advanced materials to achieve superior energy efficiencies are also underlined. Different methods of coating the desiccant on heat exchangers are described, and quantitative parameters required to analyze the performance of the system are presented. Operating parameters affecting the dehumidification and thermal performance are identified, and the effect of their variation on the dynamic behavior of DCHEs is elaborately studied. The significance of using mathematical models as design tools is recognized, and the underlying assumptions, applicability, and limitations of the models for simulating the complex heat and mass transfer phenomenon are highlighted. The possibility of integrating an additional heat transfer equipment such as sensible heat exchangers, heat recovery devices, solar evacuated tube collectors, cooling towers, and evaporative coolers with DCHE is also presented. Finally, the potential system-level applications of DCHEs as heat pumps, adsorption chillers, water harvesters, and standalone air-conditioners are assessed. This review paper provides an update on recent developments in desiccant dehumidification and is intended to be a "one-stop" archive of known practical solutions that DCHEs can offer.