The intent of this article is to highlight the various risk factors and the newer diagnostic modalities such as ultra biomicroscopy, anterior segment optical coherence tomography and confocal microscopy in cases of acute corneal hydrops. Further, the conventional as well as the newer treatment modalities are also described. Although newer diagnostic and treatment modalities are found to be useful, the available information in literature is limited. This article will encourage future prospective studies and randomized controlled trials, which may help in finding novel diagnostic and effective therapeutic techniques.