Past and on-going research works on adhesive bonding in composite and sandwich were reviewed. Discussion was emphasized on critical failure mechanisms (e.g. mechanism of peel fracture) to enhance the performance of the bonding. This paper also focused on the application of good adhesive bonding in the application of sandwich structures. Debonding between skin and core is one of the failure mechanisms that should be given more attention in fabrication of sandwich structures. Incorporating fillet in composite bonding is one of the alternative ways to reduce the stress concentration at the edges of overlap length and to produce high peel strength for bonding. Basic understanding of the designs, theories and manufacturing of adhesive bonding were also presented. Several important parameters in the design such as the strain energy release rate (SERR) and formation of fillet also discussed. The analysis of SERR using virtual crack closure technique (VCCT) has also been highlighted to achieve high strength of adhesive bonding, providing the key element for optimization of the delamination resistance in maximizing energy absorption during fracture. Significant challenges or limitations in improving and optimizing the design were also highlighted.