Day by day, biped robots’ usage is increasing enormously in all industrial and non-industrial applications due to their ability to move in any unstructured environment compared to wheeled robots. Keeping this in mind, worldwide, many researchers are working on various aspects of biped robots, such as gait generation, dynamic balance margin, and the design of controllers. The main aim of this review article is to discuss the main challenges encountered in the biped gait generation and design of various controllers while moving on different terrain conditions such as flat, ascending and descending slopes or stairs, avoiding obstacles/ditches, uneven terrain, and an unknown environment. As per the authors’ knowledge, no single study has been carried out in one place related to the gait generation and design of controllers for each joint of the biped robot on various terrains. This review will help researchers working in this field better understand the concepts of gait generation, dynamic balance margin, and the design of controllers while moving on various terrains. Moreover, the current article will also cover the different soft computing techniques used to tune the gains of the controllers. In this article, the authors have reviewed a vast compilation of research work on the gait generation of the biped robot on various terrains. Further, the authors have proposed taxonomies on various design issues identified while generating the gait in different aspects. The authors reviewed approximately 296 articles and discovered that all researchers attempted to generate the dynamically balanced biped gait on various terrains.