Conventional ophthalmic dosage forms such as eye drops are the most accepted form of ophthalmic dosage forms but it has several limitations such as poor bioavailability and therapeutic response because of several precorneal and corneal barriers present in the eye. The Conventional dosage forms are not able to retain the drug in the eye for a long time due to its excretion along with tear and nasolacrimal drainage. The most challenging field for formulation scientists is to design an ocular drug delivery system capable of retaining the drug by maintaining the contact with ocular surface for a longer period of time. Various novel approaches have been developed to overcome the limitations of conventional dosage forms. Gel forming solution is one of those novel approaches. Basically, it is administered in the form of a solution, and after administration, it shows phase transition and gets converted to gel form because of various stimuli such as pH and ion activation. It provides longer residence time as compared to conventional dosage forms attributed to its phase transition nature and hence shows sustained and controlled drug action as required in the treatment of several chronic ocular disorders such as glaucoma. The major advantage of such formulations is that it does not require sophisticated equipment for manufacture, and can be easily administered by patients, unlike ocular implants and inserts. It offers several advantages over conventional dosage forms by improving the drug release profile and reducing toxicity. A lot of research is going on to formulate such systems so that ocular diseases can be managed. This article provides a review of various polymers, drugs used for the formulation of ophthalmic gel-forming solution, and also various marketed gel forming solution preparations. It also gives an insight into various patents, clinical trials, current challenges, and future prospects of this novel ophthalmic dosage form for effective drug delivery to the eye.