Electric vehicles (EVs) offer a sustainable solution for reducing carbon emissions in the transportation sector. However, their increasing widespread adoption poses significant challenges for local distribution grids, many of which were not designed to accommodate the heightened and irregular power demands of EV charging. Components such as transformers and distribution networks may experience overload, voltage imbalances, and congestion—particularly during peak periods. While upgrading grid infrastructure is a potential solution, it is often costly and complex to implement. The unpredictable nature of EV charging behavior further complicates grid operations, as charging demand fluctuates throughout the day. Therefore, efficient integration into the grid—both for charging and potential discharging—is essential. This paper reviews recent studies on the impacts of high EV penetration on distribution grids and explores various strategies to enhance grid performance during peak demand. It also examines promising optimization methods aimed at mitigating negative effects, such as load shifting and smart charging, and compares their effectiveness across different grid parameters. Additionally, the paper discusses key challenges related to impact analysis and proposes approaches to improve them in order to achieve better overall grid performance.