As oil fields go into their final stage of production, new technologies are necessary to sustain production and increase the recovery of the hydrocarbon. Chemical injection is an enhanced recovery technique, which focuses on increasing the effectiveness of waterfloods. However, the use of chemical flooding has been hampered by its relatively high cost and the adsorption of the injected chemicals onto the reservoir rocks. In recent years, nanofluids have been launched as an overall less expensive and more efficient alternative to other chemical agents. Nanoparticle inclusion is also proposed to mitigate polymer flooding performance limitations under harsh reservoir conditions. This review presents a comprehensive discussion of the most recent developments of polymer nanohybrids for oil recovery. First, the preparation methods of polymer nanohybrids are summarized and explained. Then, an explanation of the different mechanisms leading to improved oil recovery are highlighted. Finally, the current challenges and opportunities for future development and application of polymer nanohybrids for chemical flooding are identified.