Lumpy skin disease (LSD) is a viral infection that affects buffaloes and cattle across various regions, including both tropical and temperate climates. Intriguingly, the virus–carrying skin sores remain the primary source of infection for extended periods, exacerbated by the abundance of vectors in disease–endemic countries. Recent scientific advances have revealed the molecular aspects of LSD and offered improved vaccines and valuable antiviral targets. This review summarizes the molecular features of LSD and its effect on various livestock species. We then provide an extensive discussion on the transmission dynamics of LSD and the roles of vectors in its continued spread among livestock populations. Additionally, this review critically analyses the rationales behind, as well as the affordability and effectiveness, of current control strategies worldwide.