Applying an external electric field over a polarizable electrode or object within microchannels can induce an electric double layer (EDL) around channel walls and create induced-charge electrokinetics (ICEK) within channels. The primary consequence of the induced charge is the generation of micro-vortices around the polarizable electrode or object, presenting a great potential for various microfluidic applications. This review presents the advances in theoretical, numerical and experimental studies on the physics and applications of ICEK within microfluidics. In particular, the characteristics and performance of ICEK-based microfluidic components in active micromixers, micropumps, and microvalves are critically reviewed, followed by discussing the applications of ICEK in electrophoresis and particle/cell manipulation within microfluidics. Furthermore, the opportunities and challenges of ICEK-based microfluidic devices are highlighted. This work facilitates in recognizing deliverable ICEK-based microfluidic technologies with unprecedented functionality for the next generation of biomedical applications with predictable manufacturability and functionality.