The European chestnut tree (Castanea sativa Mill.) has great economic importance, mostly due to the recognized nutritional value of its fruit. Thus, the development and improvement of the techniques of the production, preservation, and control of the diseases/pests of chestnut trees is a topic of great interest to producers, companies, researchers, and consumers to ensure the quality of this exceptional fruit. Recently, an emerging rot in chestnuts caused by the fungus Gnomoniopsis smithogilvyi (syn. Gnomoniopsis castaneae Tamietti) (Gnomoniaceae, Diaporthales) was reported both in Australia and Europe. Since then, the number of records of this pathogen in several countries of the world (Europe and Asia) where Castanea spp. is cultivated has been increasing. This disease, called “brown rot”, has been causing significant production losses, raising serious concerns for producers and the chestnut industry. This review describes the world distribution and life cycle of the causal agent of brown rot. The life cycle of G. smithogilvyi can involve primary infection, caused by ascospores, and secondary infection, related to the asexual phase of the fungus (conidia). Then, the analytical methods used to detect G. smithogilvyi are described. Furthermore, the incidences of the disease caused by G. smithogilvyi are presented, ranging from 5 to 94%, with high infection rates causing significant economic losses. The damages caused by G. smithogilvyi are discussed. In fact, it can act as an endophyte or as a pathogenic fungus, causing fruit rot, canker in several plant tissues, and necrosis in leaves, as well as in galls caused by the gall wasp Dryocosmus kuriphilus Yasumatsu. Possible pre- and post-harvest methods to mitigate the damage caused by moulds, and in particular G. smithogilvyi, are presented, including biocontrol agents and chemicals. Finally, some challenges and future prospects for a number of uncertainties related to the epidemiology, geographic distribution, spread, detection, and management of this disease are discussed.