Recovery of natural gas and oil from unconventional (shale) reservoirs relies on horizontal drilling and hydraulic fracturing to make it economical. Hydraulic fracturing generates vast quantities of flowback and produced water (FPW) and its composition exhibits huge spatial and temporal variations among shale plays. This review focuses on the characteristics and management of wastewaters originating for oil and gas extraction. Wastewater characteristics, including the quantity and chemical composition of the FPW, are discussed. The future of unconventional oil and gas industry hinges on effective management of FPW. Membrane technologies have the potential to offer solutions to sustainable reuse of this water resource. The performance of a range of membrane processes is evaluated and compared. Emerging membrane-based technologies employed in similar fields are also discussed. The results in peer-reviewed publications could offer a guide for the selection of appropriate technologies based on the desired application. Membrane fouling, lack of pilot- and full-scale experience and high energy consumption are primary challenges for membrane applications in FPW. Then challenges and future research needs are addressed, advances in membrane materials, systematic analyses of organics and electric generation from salinity gradient are promising approaches to address the issues.