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Advanced exergy analysis is an effective method for evaluating energy systems’ sustainability and efficiency. In contrast to conventional exergy analysis, which finds and measures the irreversibilities in a system, advanced exergy analysis goes farther and makes a distinction between exergy losses and destructions that can be prevented and those that cannot. This distinction gives engineers important information about the real potential for energy system improvement, enabling them to choose changes that will result in the biggest efficiency increases. By considering the interactions between system components, the approach emphasizes the influence of component performance on the overall system. Advanced exergo-economic analysis provides a more precise assessment by integrating economic factors with exergy destructions, enabling detailed cost identification for both avoidable and unavoidable exergy destruction. Similarly, advanced exergo-environmental analysis offers a refined approach by accurately tracing environmental impacts within energy systems, distinguishing between manageable and inherent emissions. This work also investigates current developments in the subject, such as the use of advanced exergy analysis to support sustainable development goals and its integration with economic and environmental methodologies. This essay emphasizes the vital role that advanced exergy analysis will play in advancing sustainability and energy efficiency in the future through a thorough review of case studies and recent research trends. Additionally, a review of previous studies has been conducted, examining advanced exergy, economic, and environmental analysis techniques aimed at achieving higher-efficiency systems.