In the last years, hydrodynamic cavitation (HC) was increasingly used for a variety of applications in the field of wastewater treatment, ranging from biological applications (i.e. cells disruption) to chemical reactions such as oxidation of organic, bio-refractory and toxic pollutants in aqueous effluents. HC is induced in fluids by subjecting them to velocity variations due to the presence of constrictions in the flow. This process involves the formation, growth, implosion and subsequent collapse of micro-bubbles, occurring in extremely small intervals of time and releasing large magnitudes of energy over a very small location. In this paper, the vast literature on HC is critically reviewed, focusing on the basic principles behind it, in terms of process definition and analysis of governing mechanisms of both HC generation and pollutants degradation. The influence of various parameters on HC effectiveness was assessed, considering fluid properties, construction features of HC devices and technological aspects of processes. The synergetic effect of HC combined with chemicals or other techniques was discussed. An overview of the main devices used for HC generation and different existing methods to evaluate the cavitation effectiveness was provided. Knowledge buildup and optimization for such complex systems from mathematical modeling was highlighted.