Pervious concrete (PC) is a structural element with environmental benefits. The industrial application is highly limited by restrictions in predicting performance owing to high uncertainties and issues in mass-producing with uniform characteristics. Primary performance indicators of PC are compressive strength, porosity, and permeability, where the porosity distribution and pore characteristics are crucial in its mechanical properties. Although compaction can improve uniformity in the properties of concrete, it is properly employed in PCs to ensure connectivity between pores and thereby enhance permeability. The compactability of fresh concrete predominantly depends on binder thickness dictated by aggregate-to-binder (A/B) ratio, water-to-binder (W/B) ratio, aggregate size, shape distribution of aggregates, and interfacial transition zone. In addition, the method of compaction, the compaction energy, and the distribution of compaction energy in the concrete matrix affect the above. The concrete compaction methods and their effectiveness vary between laboratory studies and field-scale installations. This state-of-the-art critical review of literature reviews the performance parameters of PC, compaction types and methods, compactability of PC, and models currently employed to optimize the mix design. It also highlights the potential trends for future studies to assist optimization of compaction in PC. The authors believe that this comprehensive review would assist professionals in developing a standard code of practice for using PC concrete.