This paper presents a review of the recent challenges on vapour-liquid condensation phenomena inside the annular tube. The condensation phenomenon is a main concern in nuclear power plant safety system. The condensation in annular tube is a complex phenomenon, which can classify into two categories: (i) condensation in liquid (Direct Contact Condensation) and (ii) condensation on the plate. In Newton’s Law Cooling, heat transfer surface area and surface temperature (i.e., bubble or plate) are the main parameters that need to be concerned. The heat surface area of condensation in annular tube can be determined by investigating void fraction for the desire flow pattern. In this article, the condensation phenomena are reviewed based on the amount of substantial research work conducted from the past decades to the present. Condensation phenomena in annular tube such as type of phase change, interfacial heat transfer, influence of flow structure and void fraction measurement method, are considered in the review. The future need and challenges of vapour-liquid condensation in an annular tube are also highlighted in this article.