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Penile Dysmorphic Disorder (PDD) is the persistent anxiety and preoccupation about having a small penis combined with repetitive checking behaviors, leading to significant distress and/or impairment. Literature is scarce regarding the risk factors, clinical features, and comprehensive management of PDD in men. There is a considerable degree of uncertainty regarding the risk factors, nosological status, psychopathology, diagnosis, and management of PDD. The present review will provide an overview of risk factors, patho-clinical features, and diagnostic strategies using screening instruments specific to PDD. It also aims to summarize the multimodal treatment options involved in managing PDD. The literature review shows that though the psychopathological understanding of PDD is in its early stages, considerable knowledge has accrued over the past few years regarding the phenomenology and psychopathology of PDD, which facilitates a better understanding of the disorder and guides appropriate surgical and/or psychological interventions. Specialized psychotherapies such as psychosexual therapy involving individuals and couples have been frequently used in individuals with PDD.