Polyhalogenated carbazoles are a class of emerging organic compounds characterized by the substitution of one to eight hydrogen atoms in the carbazole structure with halogen atom(s). Polyhalogenated carbazoles originate from natural and anthropogenic sources and are widely distributed in the environment. They are persistent in the environment and present a range of toxic effects, notably dioxin-like activity. This review focused on recent progress in determining their distribution, analytical methodologies, toxicity, origins, and transformation in the environment, highlighting their potential ecological and health risks. It confirmed the critical need for ongoing research regarding their environmental behavior and fate, to ensure a comprehensive understanding of the resulting environmental risks. This review also identified future research needs regarding these compounds.