In 2011, after the establishment of Ti₃C₂T_x MXene, it has attracted considerable attention in different areas such as photocatalysis, energy storage, electromagnetic shielding interference, and environmental applications owing to its high surface area, unique layered structure, easy functionalization, and high conductivity. This critical review paper discusses current trends in research as well as development of Ti₃C₂T_x MXene in desalination and water treatment processes. Additionally, the structural aspects of the MAX phase and MXene nanomaterials are illustrated along with the advancements in MXene membrane fabrication, including their synthesis, surface chemistry, and interlayer tuning. To date, very few peer-reviewed articles were published on MXene membranes for lab-scale water separation and purification. Additionally, the synthesis and characteristics of MXene nanosheets are thoroughly discussed and different types of MXene composite membranes, preparation methods and separation mechanisms are explained. Next, the gas separation, desalination, and organic solvent separation performance of MXene composite membranes as reported in earlier studies are critically evaluated. More information has been updated regarding the research gaps in the recent perception and performance of MXene-incorporated membranes. Furthermore, the limitations as well as potentials of Ti₃C₂Tx MXene-incorporated membranes are summarized. Recommendations and future perspectives for designing the commercial MXene composite membrane have been discussed. This holistic review article offers a fundamental basis for employing MXenes in the membrane field for water purification, organic solvent filtration and membrane desalination.