Soil mulching is a widely used agronomic practice for improving soil water conservation, temperature regulation, weed suppression, erosion control, and crop performance under variable environmental conditions. Its relevance has increased because modern agriculture faces water scarcity, heat stress, soil degradation, plastic pollution, and the need for resource-efficient production systems. This review synthesizes current knowledge on the main categories of mulch materials, including organic mulches, polyethylene plastic films, biodegradable films, mineral mulches, fiber-based covers, superhydrophobic sand, and biochar-based mulches. The review evaluates how these materials affect soil moisture retention, soil temperature, aggregation, nutrient cycling, microbial activity, water-use efficiency, yield formation, and environmental sustainability. Organic mulches generally provide the strongest long-term benefits for soil health because they add organic matter, stimulate biological activity, and reduce erosion, although their performance depends on biomass quality, decomposition rate, and nutrient management. Plastic films remain highly effective for short-term yield improvement, but their long-term use raises serious concerns related to residue persistence, microplastic accumulation, and soil contamination. Biodegradable films are promising alternatives, yet their degradation rate, durability, cost, and ecological consequences vary considerably under field conditions. Mineral and advanced mulches may be useful in arid and semi-arid agriculture but require broader field validation. The review concludes that no single mulch material is universally optimal. Effective selection should integrate climate, crop system, soil constraints, irrigation regime, tillage practice, material availability, economic feasibility, and environmental priorities.