Solar energy is one of the most efficient origins of energy for a wide range of environmentally beneficial purposes. Water desalination by steam generation with the help of solar energy is not only an economical and straightforward approach, but it also utilizes free energy sources to solve the problem of increasing freshwater scarcity. Solar water evaporation is an essential component of the low‐energy method for generating fresh water, which is required for economic development and human health. Freshwater productivity determines how effectively the system captures incoming solar energy and transforms it into usable heat. Effective water distillation has recently gained a lot of attention. The photothermal conversion process is built on the performance of the evaporator. This review thoroughly examines the most recent developments in photothermal materials, structure design, and engineering strategies, including design principles for highly efficient photothermal conversion, thermal management, water transport phenomena, salt rejection behavior, and improved evaporation rate. The prospective applications of this technique in saline water desalination, waste water purification, and energy generation are highlighted. Furthermore, the most recent scientific advancements are utilized to demonstrate the potential, prospects, and challenges of solar‐driven evaporation in energy conversion.