Neospora caninum is a recognized protozoan parasite of a wide range of mammalian hosts, and was reported for the first time in 1988. The isolation of its oocysts in dog's faeces in 1998 led to its establishment as a parasitic species undergoing typical coccidian life cycle. Infection with N. caninum causes paralysis and death in young livestock and companion animals, and is associated with abortions and stillbirth in cattle, and neurologic disease in calves. Considering the economic and agricultural importance of neosporosis, there is the urgent need to develop biological control measures aimed at preventing its transmission, infection, as well as reducing severity of the disease. In this paper, we have reviewed the progress made to date on the parasite-host immunology and on vaccine development including its prospects, and discussed possible strategies in the formulation of vaccine(s) against neosporosis.