This review addressed the fundamental principles, advantages and challenges of forward osmosis (FO) membrane processes. FO is receiving more and more research attractions because it can concurrently produce clean water with low energy input and generate hydraulic energy (pressure retarded osmosis). FO typically requires zero or low hydraulic driving pressure, therefore the fouling potential of the FO membranes is much lower than conventional pressure-driven membrane processes. However, concentration polarization (CP), especially the internal CP significantly reduces the effective osmotic pressure across the FO membrane, the major driving force for the filtration process. As a result, innovative FO membrane materials like electrospun nanofibers have been explored to make low tortuosity, high porosity, and thin FO membranes with a high rejection rate of solutes and low or zero diffusion of the draw solute. The orientation of the FO membrane with active layer-facing-feed solution has less fouling than active layer-facing-draw solution. In addition, to further decrease the fouling potential, a hydrophilic and more negatively charged membrane is preferred when filtration of natural organic matter (NOM) or alginate in the absence of multivalent cations.