•Batter coating reduces oil uptake and improves texture and structure of fried foods.•Formulation and cooking method greatly impacts physico-mechanical and thermal properties of batter coating.•Pre- and post- fry treatment (microwave, infrared, hot air) modulates oil-reduction functionality of batter coating. Food surface modulation by batter coating is a promising approach to reduce the presence of oil in fried products. This review critically discussed the functionalities, mechanism of actions, rheology, ingredients of formulation, mathematical modeling of the process, cooking method, safety and regulatory aspects, physicochemical, thermal-microstructural characterization of batter coatings, and future research directions. Enormous list of ingredients could be used in preparation of oil-reducing viscoelastic batter coating that includes mostly flours, hydrocolloids, and starches. Bioactive compounds, enzymes, minerals, herbal extracts, baking agents, sugar alcohols, etc. could be incorporated in batter formulation to affect the taste and texture of coated products. Overall mass-transfer process of batter-coated fried foods could be characterized by several mathematical models (Fick, Newton, Page, Henderson & Pabis, modified Page, Arrhenius). Surface and internal microstructural characterization techniques, thermal probing, physicochemical characterization techniques and artificial intelligence can characterize different functionalities of batter coatings including oil reduction and textural evolution.