This article provides a critical review of aero-optics with an emphasis on recent developments in computational predictions and the physical mechanisms of flow-induced optical distortions. Following a brief introduction of the fundamental theory and key concepts, computational techniques for aberrating flow fields and optical propagation are discussed along with a brief survey of wave-front sensors used in experimental measurements. New physical understanding generated through numerical and experimental investigations is highlighted for a number of important aero-optical flows, including turbulent boundary layers, separated shear layers, and flow over optical turrets. Approaches for mitigating aero-optical effects are briefly discussed.