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In the product development process, structural optimization plays vital role because it deals with size, shape and topology of the structures. However, structural performance greatly depends on its geometric shape and hence structural shape optimization has remained one of the most active research areas since early 1970s. Conventional parametric shape optimization technique employs grid-based numerical tools like FEM and BEM for structural analysis, which experiences some innate limitations like mesh distortion and frequent remeshing, element locking and poor approximation while dealing with large shape changes during the optimization process. Meshless Methods (MMs) can alleviate these issues when used as a structural analysis tool in shape optimization. In last two decades, MMs have been explored for structural shape optimization along with various deterministic and stochastic optimization algorithms. The objective of present work is twofold, first is to review advanced parametric shape optimization techniques which are based on MMs like Element Free Galerkin (EFG) method and Reproducing Kernel Particle Method (RKPM) for linear elastic, thermoelastic, hyperelastic, frictional contact and structure dynamics optimization problems and second is to emphasize benefits of meshless techniques in shape optimization. Based on the review, the article presents some critical observations including Design Sensitivity Analysis (DSA) in meshless environment, numerical integration techniques in MMs and benefits of coupled FEM-MM approach in shape optimization. At the end, promising future research directions in shape optimization field based on MMs are presented along with concluding remarks. [ABSTRACT FROM AUTHOR]