Coral reefs are extensively distributed in shallow waters of tropical and subtropical regions, and they are recognized as the natural barriers along coastlines. In recent years, due to the impacts of global climate change and human activities, coral reefs worldwide have been undergoing large-scale bleaching and degradation. A complete comprehension of the water-sediment dynamic processes of reef islands is a prerequisite for further investigating the physical, chemical and biological processes within the reef environment. The coral reef islands situated in the South China Sea hold vital land resources and are intricately linked to China's core interests. Additionally, they play a pivotal role in establishing the Maritime Silk Road and safeguarding maritime rights and interests. At present, the safety of anti-wave facilities in the South China Sea under the influences of extreme climate events such as typhoons need the support from relevant water-sediment dynamic theories. In this study, based on a comprehensive literature review, the state-of-the-art research advances on water-sediment dynamics around the reef islands are summarized in view of the following four aspects: the hydrodynamic characteristics and ecological well-being of reef system under combined action of wave and current, the low-frequency wave motions around the reef coasts,along with the coastal disaster prevention and mitigation, the movement of coral sand and the evolution of reef islands, the interaction between waves and breakwaters, as well as the defense of reef islands. Subsequently, this study proposes future research directions for the above four topics, respectively. It aims to provide the reference for future relevant research on water-sediment dynamics around the reef islands.