The emergence of dynamic rerouting in multi-modal transportation networks has emerged as a crucial area in operations research, revolutionizing routine optimization. The review study analyzes multiple research publications on algorithms and techniques related to dynamic rerouting to give a thorough summary of the state of research in this field and provide future suggestions. The research paper explains the importance of dynamic rerouting in modern transportation systems and recognizes its critical role in tackling issues like accidents, traffic congestion, and infrastructure constraints. In addition, the review examines the development of dynamic rerouting techniques by examining several studies to uncover the theoretical foundation, technological developments, and effects of the practices on various forms of transportation. The paper emphasizes the potential of technological advancements such as artificial intelligence, the Internet of Things, and big data in transforming routing efficiencies. Further, the review presents specific difficulties and best practices for each mode of transportation, highlighting the many uses of dynamic rerouting in air, sea, rail, and road transportation. The review also digs deeper into the integration barriers common in multi-modal networks, highlighting successful case studies that overcome these obstacles as well as strategic approaches and regulatory modifications. Lastly, the research paper assesses the impact of dynamic rerouting on urban development, sustainability, and potential directions for future research such as the integration of large language models. The comprehensive literature review incorporates multiple research perspectives to offer significant insights into the efficacy, challenges, and potential future pathways for dynamic rerouting within multi-modal transportation networks.