A subsurface dam is a facility that stores groundwater in the pores of strata and uses groundwater in a sustainable way. These dams have many merits that surface dams do not, e.g., land is not submerged to store water and there is no danger of breaching due to natural or manmade disasters. In addition, the surface area can be used in the same way before and after construction of the subsurface dam. Because of these merits, there are many underground dams in the world. This paper reviews the basics about underground dams, the construction of underground dams around the world, and the problems involved in the sustainable use of groundwater. According to a recent review of the construction of underground dams, the scale of underground dam projects has grown. Some problems with underground dams reported in the past, i.e., sedimentation, flooding, collapse, and salination, occurred because of human error, as well as the immaturity and complexity of geological features. In terms of water quality, long-term monitoring was carried out after construction of underground dams on Miyako Island, Japan. To deal with any problems, countries must exchange information gathered from their experiences in constructing underground dams.