Operation of closed drift thruster (CDT) relies mainly on neutral gas, whose trajectory and distribution in the flow field have a significant influence on performance. Neutral flow dynamics (NFD), also known as the dynamics of the neutral gas in the thruster, has received increased attention from researchers over the past century, drawing attention to its significant influence on CDT. This article will therefore review the most recent research on NFD in CDT. At the outset of the review, we will provide a quick overview of how the CDT works and the influence of NFD on its performance, focusing on the effect on the CDT’s discharge characteristics and discharge oscillations. The effect of the gas distributor and discharge channel layout on the performance of the CDT and NFD is highlighted in the major portion of the article. Following that, we provide an overview of typical NFD detection techniques. Additional sub-categories of work are provided outside of the main portion, including usual work on neutral gas and gas distributor temperatures, neutral gas distribution uniformity, and neutral gas types.