Xinjiang, a key grain production region in arid Northwest China, faces severe water scarcity and low agricultural water use efficiency. Although subsurface drip irrigation (SDI) has been widely studied for horticultural crops, a comprehensive synthesis focusing on SDI system design, water-fertilizer management, and soil-crop responses in wheat production under arid conditions remains limited. This knowledge gap restricts the development of optimized irrigation strategies for wheat cultivation in Xinjiang, where extreme aridity, widespread oasis agriculture, soil salinization risk, and the dominance of densely planted wheat create management requirements that differ from those of humid regions and horticultural production systems. Therefore, this review summarizes the development of SDI technology, its system design parameters, and integrated water-fertilizer management strategies, while systematically integrating recent advances in soil-crop-microbial interactions and resource use efficiency under arid conditions, which have rarely been synthesized in previous SDI reviews. Synthesizing current knowledge on the impacts of SDI on soil water dynamics, soil properties, microbial communities, crop root architecture, biomass production, and resource use efficiency, this review further discusses general advances in SDI in the context of their relevance to Xinjiang, with particular emphasis on how regional soil-climate conditions and wheat production practices influence system design, fertigation management, and field applicability. Multiple studies indicate that SDI can simultaneously reduce evaporation and deep percolation, mitigate surface salt accumulation, promote deeper root development, and improve crop productivity and resource use efficiency. However, high initial investment and maintenance costs, along with risks of emitter clogging, still hinder its large-scale adoption. For Xinjiang's wheat and other densely planted crops, future research should prioritize optimizing subsurface drip irrigation (SDI) systems, as studies have shown that SDI can increase water use efficiency (WUE) by 20-30% and enhance crop yield by 10-15%, particularly under water-scarce conditions. The study's findings are as follows: (1) optimize SDI system parameters for local soil-climate conditions, (2) elucidate the synergistic mechanisms between water-fertilizer coupling and soil-crop systems, and (3) develop cost-effective and durable system components. Importantly, these findings are particularly relevant for Xinjiang, where extreme aridity, soil salinization, and limited water resources require region-specific optimization of SDI systems. These efforts will support efficient and sustainable wheat production in Xinjiang and other arid regions.