Gearboxes have a significant role in the operation of rotating machinery. Several techniques exist for the diagnosis of fault in gearboxes. This work presents the techniques for the condition monitoring and fault diagnosis of the gearboxes based on Acoustic Emission (AE). The review describes the application of AE to detect the various types of fault in the gearboxes for different types of gear, the AE parameters used for the gearbox fault diagnosis, AE signal processing techniques, feature extraction techniques for the fault identification of gearbox, modelling of AE generated in gearbox and fault location detection using AE technique. After detailed description of the various techniques, some potential research issues are also discussed which is associated with condition monitoring and fault diagnosis of gearboxes using AE.