The category of dealcoholized wine is receiving mounting interest within the wine industry related to the ability to retain sensory characteristics similar to regular wine while reducing or completely removing the alcohol level. This option has led health-conscious consumers to seek a lower alcohol alternative without compromising the authentic wine experience. This review provides a comprehensive overview of the various dealcoholization techniques that are being used in the production of dealcoholized and partial dealcoholized wine, specifically examining reverse osmosis, osmotic distillation, vacuum distillation, spinning cone column, pervaporation, and diafiltration along with the effects of these methods on chemical and sensory characteristics of wine, involving flavor, aroma, mouthfeel, and finish. Various aspects of the impact of dealcoholization on wine stability were explored, including chemical, microbial, oxidative, and color stability. Furthermore, the market analysis of dealcoholized wine products including present and future growth in different regions is reported. Understanding these factors is of utmost importance for dealcoholized wine's growing advancement and market success, as it endeavors to accommodate various customer demands and preferences in a swiftly changing beverage environment.