As marine development extends into deep and far-offshore waters, fixed breakwaters become increasingly costly and difficult to construct and may have greater environmental impacts. Floating breakwaters (FBs) offer flexible deployment across a wide range of water depths and have therefore received growing attention. Yet the dominant wave attenuation mechanisms and key hydrodynamic responses differ among FB configurations, making it difficult to compare their performance and select suitable analysis methods. This review examines advances in FB configurations, analysis methods, and hydrodynamic characteristics. It summarizes structural types and shows that FB design has evolved from reliance on principal dimensions and wave reflection toward the combined use of multiple attenuation mechanisms. The applicability and limitations of empirical methods, potential flow methods, computational fluid dynamics, and experimental methods are compared. Structural optimization, mooring system design, wave attenuation mechanisms, and fluid–structure interaction are also reviewed, with attention paid to motions, loads, and local flows. Key unresolved challenges include broadband attenuation of long-period waves, safety under extreme sea states, performance trade-offs in multifunctional systems, and scale effects and prototype validation. By linking FB configuration characteristics with dominant wave attenuation mechanisms, key hydrodynamic responses, and the applicability of different analysis methods, this review provides an integrated comparative framework for evaluating FB performance, selecting appropriate analysis methods, and supporting engineering assessment in deep and far-offshore waters.