The global temperature has been increasing over the years due to climate change that, directly or indirectly, affects water and energy consumptions in the agriculture sector. The application of mulching practices reduces soil evaporation, conserves soil moisture, suppresses weed growth, controls soil structure and temperature, influences soil micro-organisms, and is aesthetically pleasing. This study has reviewed 189 published research papers, which described the effects of various mulching materials and methods on soil and environment that influence crop productivity. This paper describes the extent of influence of different mulching materials and methods on the hydrothermal environment of soils. It is imperative to know the processes that control soil environments under various mulching conditions and the effects of mulching materials on crop yield, productivity and water use efficiency. These issues of mulching are the prime concerns of this review study. Plastic mulching materials have a greater importance than the organic ones to control soil environment and increase crop yield. But, the organic mulching materials are inexpensive and environment friendly. The selection of an appropriate mulching material is, however, guided by crop type, crop management practices and climatic conditions. Future research is needed on the effects of low-cost biodegradable mulching materials on microclimate modifications, soil biota, soil fertility, crop growth and crop yields.