An efficient cooling system is necessary for the reliability and safety of the modern microchips for longer life. As microchips become smaller and more powerful, the heat flux generated by these chips per unit area also rises sharply. Traditional cooling techniques are inadequate to meet the recent cooling requirements of microchips. To meet the current cooling demand of Microelectromechanical devices (MEMS) devices and microchips, microchannel heat sinks (MCHS) technology is the latest invention that can dissipate a significant amount of heat because of its high surface area to volume ratio. This study provides a concise summary of design, material selection, and performance parameters of MCHS that are developed over the last few decades. The limitations and challenges associated with different techniques employed by researchers over time to enhance the thermal efficiency of microchannel heat sinks are discussed. The effects on the thermal enhancement factor, Nusselt number, and pressure drop at different Reynold numbers, in passive techniques (flow obstruction) i.e. ribs, grooves, dimples, and cavities change in curvature of MCHS are discussed. This study also discusses the increase in heat transfer using nanofluids and how change in coolant type also significantly affects the thermal performance of MCHS by obstructing flow. This study provides trends and useful guidelines for researchers to design more effective MCHS to keep up with the cooling demands of power electronics.