<p>The demand for scandium is expected to rise in coming years owing to its crucial role in advanced technologies and high-tech aluminum (Al) alloys. The supply for this increasing demand cannot be met by the current production rates. New supply sources need to be identified in order to pacify the increasing cost, scarcity and price fluctuations that could potentially diminish business investment. Recovery of strategically important materials from secondary resources will always be an alternate solution to explore in the face of scarcity and supply risks. Red mud (bauxite residue), the highly alkaline waste results from bauxite industry is a potential source for various valuable metal ions. Over the years, extensive research has been conducted on extracting valuable metals from red mud and the challenges of selective extraction of components have been discussed. This review discusses the various reports on the coextraction and the selective extraction of scandium from red mud residue. The challenges pertaining to selective extraction is presented along with a perspective on the importance of performing economic analysis of the processes. The review catalogues the various parameters involved in hydrometallurgical, pyrometallurgical, leaching-solvent extraction, and bio-leaching process of red-mud for scandium extraction.</p> Graphical Abstract <p></p>