Underwater object detection (UOD) is vital to diverse marine applications, including oceanographic research, underwater robotics, and marine conservation. However, UOD faces numerous challenges that compromise its performance. Over the years, various methods have been proposed to address these issues, but they often fail to fully capture the complexities of underwater environments. This review systematically categorizes UOD challenges into five key areas: Image quality degradation, target-related issues, data-related challenges, computational and processing constraints, and limitations in detection methodologies. To address these challenges, we analyze the progression from traditional image processing and object detection techniques to modern approaches. Additionally, we explore the potential of large vision-language models (LVLMs) in UOD, leveraging their multi-modal capabilities demonstrated in other domains. We also present case studies, including synthetic dataset generation using DALL-E 3 and fine-tuning Florence-2 LVLM for UOD. This review identifies three key insights: (i) Current UOD methods are insufficient to fully address challenges like image degradation and small object detection in dynamic underwater environments. (ii) Synthetic data generation using LVLMs shows potential for augmenting datasets but requires further refinement to ensure realism and applicability. (iii) LVLMs hold significant promise for UOD, but their real-time application remains under-explored, requiring further research on optimization techniques.