With the global energy consumption on the rise and the gradual decline in conventional oil production, unconventional reservoirs have received considerable attention in the last decade. However, due to the unique physical properties and a large number of micro/nanopores in unconventional reservoirs, fluid flow in these reservoirs is considerably different from conventional ones. Therefore, it is highly important to conduct research on elucidating these fluid flow mechanisms. Furthermore, to avoid problems associated with the rapid production decline and low recovery efficiency in such reservoirs, an enhanced oil recovery technology that can efficiently and economically develop unconventional reservoirs is urgently required. This paper systematically summarizes the current research on flow mechanisms, including capillary imbibition, molecular-scale fluid flow and productivity prediction in unconventional reservoirs, and introduces the enhanced oil recovery and application status of hydraulic fracturing assisted oil displacement technology, along with a brief analysis of their advantages and disadvantages. This study is intended to serve a reference for the efficient development of unconventional reservoirs.