This review focuses on the present status of forward osmosis (FO) niches in two main areas: seawater desalination and wastewater reuse. Specific applications for desalination and impaired-quality water treatment and reuse are described, as well as the benefits, advantages, challenges, costs and knowledge gaps on FO hybrid systems are discussed. FO can play a role as a bridge to integrate upstream and downstream water treatment pro-cesses, to reduce the energy consumption of the entire desalination or water recovery and reuse processes, thus achieving a sustainable solution for the water-energy nexus. FO hybrid membrane systems showed to have advantages over traditional membrane process like high pressure reverse osmosis and nanofiltration for desalination and wastewater treatment: (i) chemical storage and feed water systems may be reduced for capital, oper-ational and maintenance cost, (ii) water quality is improved, (iii) reduced process piping costs, (iv) more flexible treatment units, and (v) higher overall sustainability of the desa-lination and wastewater treatment process. Nevertheless, major challenges make FO systems not yet a commercially viable technology, the most critical being the development of a high flux membrane, capable of maintaining an elevated salt rejection and a reduced internal concentration polarization effect, and the availability of appropriate draw solu-tions (cost effective and non-toxic), which can be recirculated via an efficient recovery process. This review article highlights the features of hybrid FO systems and specifically provides the state-of-the-art applications in the water industry in a novel classification and based on the latest developments toward scaling up these systems.