In the course of recent years, a lot of research has been directed in the ranges of optical packet switching and optical burst switching (OBS). This examination has been inspired by the requirement for procedures that are equipped for supporting the requesting prerequisites of developing dynamic high-transfer speed applications in an adaptable and effective way. In this paper we have undertaken the critical and mandatory factors of OBS such as (1) assembling the bursts, (2) routing (3) resource (such as transmission channels) scheduling and (4) burst segmenting for optimal transmission). Consequently the current research is focusing on these both of dissimilar variables of OBS and putting endeavors to contribute ideal ways to assemble, route, schedule or segment. This manuscript reviewed the nomenclature of the Optical Burst Switching Networks where fundamental ideas are examined and the aim is to identify the difficulties and strengths for optical packet and burst switching systems. This audit has been inspired by the requirement for methods that are equipped for supporting the future data transmission necessity of cutting edge applications and administrations of Internet Protocol systems. The authors have examined the fundamental ideas of OBS worldview and laid out issues identified with OBS systems. The future challenges that are still limiting the performance of the present contributions are told subsequently evincing the scope for future research.