Chromophoric Dissolved Organic Matter (CDOM), the light-absorbing fraction of dissolved organic matter, plays a critical role in modulating the optical, ecological, and biogeochemical properties of coastal waters. This review comprehensively assesses CDOM dynamics along the diverse Indian coastline, spanning over 7500 km and encompassing ecosystems such as mangroves, estuaries, coral reefs, and lagoons. CDOM in Indian coastal waters arises from both allochthonous sources (e.g., riverine input, mangrove detritus) and autochthonous processes (e.g., phytoplankton exudation, microbial degradation). Its spatial-temporal variability is primarily driven by monsoonal hydrology, anthropogenic activities, and ecosystem-specific biodiversity. Notable regional differences are observed, with high CDOM levels in the Sundarbans, Kochi backwaters, and Chilika Lagoon, and relatively low concentrations in oligotrophic zones such as the Gulf of Mannar. CDOM serves as a valuable proxy for organic carbon content, nutrient enrichment, and water quality, while also influencing underwater light penetration and carbon cycling. Anthropogenic pressures—such as urban runoff, industrial discharge, and land-use changes—further alter CDOM composition and distribution. The review emphasizes the need for standardized methodologies, long-term monitoring, and region-specific remote sensing algorithms to improve our understanding of CDOM variability. It also identifies key research gaps to support coastal ecosystem management and climate-resilient policy frameworks in India.