High-temperature heat pumps (HTHPs) are emerging as a cornerstone technology for industrial decarbonization, enabling efficient recovery and upgrading of low-grade waste heat to supply process heat and steam above 100 °C. Operating at temperatures between 120 °C and 200 °C, HTHPs address the heating demands of energy-intensive sectors such as chemicals, food processing, and metals. This review consolidates recent advancements in HTHP design, refrigerant selection, and integration strategies. Current systems achieve coefficients of performance (COP) of 2.5–4.0 for 100–150 °C outputs, while advanced configurations using low-GWP refrigerants report COPs up to 6.10. Environmental benefits are significant: HTHPs can reduce CO₂ emissions by 60–98% compared to gas boilers, with case studies demonstrating annual savings exceeding 30,000 tCO₂. Economic analyses indicate payback periods as short as 1.9–3 years for optimized designs. Key challenges include the development of low-GWP refrigerants, high initial investment costs, and maintaining efficiency under large temperature lifts. Future research should focus on advanced cycle configurations, integration with thermal storage and renewables, and innovative compressor technologies to accelerate adoption. Overall, HTHPs represent a critical pathway for low-carbon industrial heating, offering substantial energy recovery and a proven potential to reduce the carbon footprint of high-temperature processes.