Verticillium wilt (VW) of cotton caused by the soilborne pathogen Verticillium dahliae is a major disease across cotton production worldwide. The disease can result in yield reductions up to 80% in some occasions. V. dahliae is an asexual fungus and belongs to a relatively small Verticillium genus in the Ascomycota, though both of the mating type idiomorphs are present within some populations. Diversity of V. dahliae is widely associated with vegetative compatibility groups (VCGs), of which six different VCGs are recognised. Of these, isolates belonging to VCGs 1, 2 and 4 are globally distributed and associated with a broad host range including cotton. Approximately 400 plant species have been recorded as hosts of V. dahliae. Pathogenicity and virulence of V. dahliae in many cases are correlated with VCG designations and hosts of origin. Disease risk management of VW of cotton still relies on accurate, rapid detection and quantification of V. dahliae using both conventional and molecular approaches. The use of resistant cultivars is the most effective and economical control strategy; however, no cultivars confer complete resistance to the disease. Control strategies including cultural, biological, chemical and induced resistance approaches have indicated certain degrees of success in minimising disease damage and diminishing the build-up of pathogen inoculum. In this review, we discuss insights into the VW disease of cotton, the associated pathogen and current control approaches, as well as future research perspectives.