Nowadays, industries are focussing on reducing the concentration of the volatile organic component in the coatings, also easing the toxicity that comes hand in hand with the usage of petroleum-based solvents to lessen the environmental impact. Numerous ways are presumed to tackle this problem; however, in recent years, tremendous research is carried in the field of reactive diluents. The review paper explores the role of petroleum and biobased reactive diluents in various resin chemistries like epoxy, unsaturated polyester, vinyl ester, alkyd, and polyurethane. The features accorded by the conventional reactive diluents are compared with the novel biobased reactive diluents. Furthermore, this work discusses the development of coatings for flame retardancy, antistatic properties, and coil-coating application. It also reviews the structure and characteristic behaviour offered by reactive diluents on the film obtained.