AbstractCoastal settlements are experiencing the effects of climate change‐induced sea‐level rise, including a significant but often poorly‐characterized impact on groundwater. The shallow water tables present in the built coastal environment contribute to an increased risk from natural hazards such as groundwater flooding and saltwater intrusion. Historical urban development was accompanied by impacts on shallow groundwater, and in the future subsurface environments, including underground infrastructure, will face additional pressure. This article reviews processes of the coastal groundwater zone and simulation tools used to evaluate possible impacts of sea‐level rise. The benefits and limitations of the two main methods to assess coastal groundwater rise and contribution to flooding are discussed using studies and investigations up to 2021. The review addresses challenges associated with the simulation tools to evaluate changes in urban hydrogeology due to sea‐level rise. The models reviewed do not specifically estimate groundwater contribution to land‐surface flooding. We highlight a critical need for methodology comparisons between spatial interpolation and numerical tools that will guide future work. An adequate validation of assessment methods is required and will be supported by improved coastal groundwater monitoring networks focused on water quality, saltwater intrusion, and continuous groundwater levels records. From current monitoring practices, evidence for groundwater rise with rising sea level is not widely observed at present. New monitoring sites are recommended near the coastline and tidally influenced surface water bodies, to better evaluate the rise of the water table and impacts on infrastructure.