AbstractSignificant private motorization to meet increased mobility requirements has resulted in severe congestion and parking problems in urban areas. In such a scenario, Park-and-Ride (P&R) has been a potential and established travel demand management strategy that efficiently improves urban mobility by significantly reducing traffic congestion and parking burden in city centers. Thus, it is essential that urban planners and policy makers establish P&R facilities at appropriate locations. The current manuscript presents a state-of-the-art review of past and present practices in selecting appropriate locations for establishing P&R facilities. The present study provides useful insights into the critical factors influencing the identification of potential P&R locations, establishment of P&R facilities at optimal locations, and development of commuters’ P&R location choice behavior models. The study findings could help researchers, planners, and policy makers collate basic ideas of P&R facility planning and develop context-specific guidelines to suitably locate P&R facilities as potential urban travel demand management solutions in the context of developing countries.