Probiotics are increasingly used in aquaculture to protect cultivated organisms from pathogens and improve water quality and feed efficiency. Shrimp are the most commonly cultivated aquaculture species worldwide. In this current review, we will explore the current challenges that impact shrimp aquaculture and summarize how probiotics are utilized to improve production. Probiotics are live microorganisms that are described as friendly bacteria or healthy bacteria supplemented to the shrimp gut through feeds. Probiotics have been demonstrated to increase gastrointestinal stability, secrete antibacterial compounds, compete with pathogens to prevent intestinal adhesion, compete for the nutrients required for pathogen survival and produce antitoxin effects. Probiotics can also modulate the immune system and control the allergic response of the body. Therefore, this review sheds light on the challenges faced in shrimp production as well as the different types of probiotics, their methods of application, their modes of action, their role in improving shrimp production, and their influence on water quality.