The increasing depth of open-pit mines has led to the accumulation of vast quantities of waste material, posing significant waste disposal challenges due to limited space, stringent environmental regulations, and safety concerns for planning and designing open-pit mines. Improper placement of external dumps can impose excessive surcharge loads, altering stress distribution and triggering failure mechanisms such as excessive settlement, rotational sliding, and shear failure. This review paper examines how surcharge loading affects pit slope stability and emphasizes determining an optimal safe distance from the pit crest to mitigate instability. It evaluates critical geotechnical parameters such as material density, grain size, friction angle, cohesion, void ratio, porosity, and compaction along with geometric factors such as bench height, slope angle, and dump height. The paper also explores analytical design approaches, including empirical methods, physical modeling, and numerical techniques like Finite Element Method, Limit Equilibrium Method, and Strength Reduction Method, to analyze slope behavior under varying surcharge conditions. This problem is more than just strategic dump placement, which is crucial for ensuring slope stability, reducing failure risks, and promoting sustainable waste management in open-pit mining operations.