Pipeline corridors have been rapidly increasing in length and density because of the ever growing demand for crude oil and natural gas resources in hydrocarbon-rich permafrost regions. Pipeline engineering activities have significant implications for the permafrost environment in cold regions. Along these pipeline corridors, the shrubification in the right-of-way (ROW) has been extensively observed during vegetation recovery. However, the hydrothermal mechanisms of this ROW shrubification have seldom been studied and thus remain poorly understood. This paper reviews more than 112 articles mainly published from 2000 to 2022 and focuses on the hydrothermal mechanisms of shrubification associated with environmental changes induced by the rapidly degrading permafrost from pipeline construction and around the operating pipelines under a warming climate. First, the shrubification from pipeline construction and operation and the ensuing vegetation clearance are featured. Then, key permafrost-related ROW shrubification mechanisms (e.g., from the perspectives of warmer soil, soil moisture, soil type, soil nutrients, topography and landscapes, and snow cover) are discussed. Other key influencing factors on these hydrothermal and other mechanisms are hierarchically documented as well. In the end, future research priorities are identified and proposed. We call for prioritizing more systematic and in-depth investigations and surveys, laboratory testing, long-term field monitoring, and numerical modeling studies of the ROW shrubification along oil and gas pipelines in permafrost regions, such as in boreal and arctic zones, as well as in alpine and high-plateau regions. This review can improve our understanding of shrubification mechanisms under pipeline disturbances and climate changes and help to better manage the ecological environment along pipeline corridors in permafrost regions.