The recirculating aquaculture system (RAS) marks a significant shift in global aquaculture, transitioning to controlled, land-based production. This review highlights technological advancements that enable the treatment and reuse of over 90% of water, thereby enhancing water quality and production efficiency. These features position RAS as a cornerstone of sustainable seafood production. This review introduces the RAS Readiness Level (RRL) framework which is a novel, structured approach to assess the commercial maturity of emerging RAS technologies. Applying the RRL to six key technological domains (from digital AI systems to biological PHB recovery) reveals a pervasive pilot-scale purgatory where most innovations stagnate at RRL 4–6. It further addresses advanced processes such as membrane bioreactors, denitrification reactors, and the conversion of waste into valuable products. Furthermore, this review addresses persistent challenges, including high energy demand, economic viability, and the accumulation of pathogens. Finally, it focuses on the emergent integration of the Internet of Things (IoT) and artificial intelligence (AI), which are revolutionizing RAS management through data-driven optimization. By synthesizing current innovations, this review envisions a future of intelligent, closed-loop RAS where advanced IoT- and AI-driven technologies optimize water quality and feeding strategies to minimize ecological impact while enhancing sustainability and productivity.