Polymer inclusion membranes (PIMs) have undergone substantial advancements in their selectivity and efficiency, driven by their increasing deployment in separation processes, environmental remediation, and sensing applications. This review presents recent progress in the development of PIMs, focusing on strategies to enhance ion and molecule selectivity through the incorporation of novel carriers, including ionic liquids and task-specific extractants, as well as through polymer functionalization techniques. Improvements in mechanical and chemical stability, achieved via the utilization of high-performance polymers such as polyvinylidene fluoride (PVDF) and polyether ether ketone (PEEK), as well as cross-linking approaches, are critically analyzed. The expanded application of PIMs in the removal of heavy metals, organic micropollutants, and gas separation, particularly for carbon dioxide capture, is discussed with an emphasis on efficiency and operational robustness. The integration of PIMs with electrochemical and optical transduction platforms for sensor development is also reviewed, highlighting enhancements in sensitivity, selectivity, and response time. Furthermore, emerging trends towards the fabrication of sustainable PIMs using biodegradable polymers and green solvents are evaluated. Advances in scalable manufacturing techniques, including phase inversion and electrospinning, are addressed, outlining pathways for the industrial translation of PIM technologies. The review concludes by identifying current limitations and proposing future research directions necessary to fully exploit the potential of PIMs in industrial and environmental sectors.