The development of next-generation drilling fluids is crucial for the success of horizontal and multilateral wells, which pose unique challenges such as torque and drag, hole cleaning difficulties, and wellbore instability. This review explores the evolving role of drilling fluids, focusing on the desired properties required to address these challenges, including enhanced cuttings transport, reduced torque and drag, and improved wellbore stability. Furthermore, the paper discusses innovative additives, such as nanoparticles, high-performance polymers, and biodegradable lubricants, which are key to optimizing fluid performance. Environmental considerations and the chemical and mechanical interactions between fluid components are also analyzed. Finally, the paper examines future trends in drilling technology, highlighting the expected benefits of next-generation fluids and identifying potential challenges for future research and development. These advanced fluids are positioned to revolutionize drilling efficiency while maintaining sustainability in increasingly complex drilling environments.