Transparent wood (TW)-based materials have increasingly become the focus of researchers worldwide owing to their superior physico-chemical-optical properties, sustainable nature, as well as the fact that they are highly accommodating frameworks that can act as building blocks to readily explore a vast range of potential functionalities, holding great potential to displace glass and plastics in their various respective applications. The integration of multiple functionalities into TW has been undertaken to fulfill the demands of prospective sophisticated applications through the utilization of functional fillers or coatings. Herein, the up-to-date foundational developments and reports concerning emergent TW composites and coatings from a perspective of fabrication-functionality-application are comprehensively summarized, with a particular focus on seven specific functionalities; i) solar control; ii) chromically-responsive, iii) electrically-conductive, iv) shape-memory active; v) flame-retardant; vi) electromagnetic interference shielding; and vii) aesthetics. The potential applications of TW with these functionalities are also discussed. Finally, the current challenge with TW is addressed, as well as the future developments required for eventual real-world application.