The construction sector presently consumes about 40% of global energy and generates 36% of CO₂ emissions, making facade retrofits a priority for decarbonising buildings. This review clarifies how ventilated facades (VFs), wall assemblies that interpose a ventilated air cavity between outer cladding and the insulated structure, address that challenge. First, the paper categorises VFs by structural configuration, ventilation strategy and functional control into four principal families: double-skin, rainscreen, hybrid/adaptive and active–passive systems, with further extensions such as BIPV, PCM and green-wall integrations that couple energy generation or storage with envelope performance. Heat-transfer analysis shows that the cavity interrupts conductive paths, promotes buoyancy- or wind-driven convection, and curtails radiative exchange. Key design parameters, including cavity depth, vent-area ratio, airflow velocity and surface emissivity, govern this balance, while hybrid ventilation offers the most excellent peak-load mitigation with modest energy input. A synthesis of simulation and field studies indicates that properly detailed VFs reduce envelope cooling loads by 20–55% across diverse climates and cut winter heating demand by 10–20% when vents are seasonally managed or coupled with heat-recovery devices. These thermal benefits translate into steadier interior surface temperatures, lower radiant asymmetry and fewer drafts, thereby expanding the hours occupants remain within comfort bands without mechanical conditioning. Climate-responsive guidance emerges in tropical and arid regions, favouring highly ventilated, low-absorptance cladding; temperate and continental zones gain from adaptive vents, movable insulation or PCM layers; multi-skin adaptive facades promise balanced year-round savings by re-configuring in real time. Overall, the review demonstrates that VFs constitute a versatile, passive-plus platform for low-carbon buildings, simultaneously enhancing energy efficiency, durability and indoor comfort. Future advances in smart controls, bio-based materials and integrated energy-recovery systems are poised to unlock further performance gains and accelerate the sector’s transition to net-zero. Emerging multifunctional materials such as phase-change composites, nanostructured coatings, and perovskite-integrated systems also show promise in enhancing facade adaptability and energy responsiveness.