Mobile Light Detection and Ranging (LiDAR) integrates laser scanning equipment, Global Positioning Systems, and inertial navigation technologies into one system that can acquire positional data and intensity information about surrounding objects. In Mobile Laser Scanning, data collection equipment is mounted on a truck which travels through a highway creating a 3D point cloud image of the entire road segment. The high point density of such datasets enables automated extraction of multiple features on highways, which are typically collected manually during long site visits. In addition, the LiDAR data sets could also be used to perform geometric assessments of highway attributes such as available stopping sight distance. If used to their full potential, LiDAR datasets could create a paradigm shift in how geometric assessment and safety audits on highways are conducted. Despite the huge potential, only limited research has attempted extraction of geometric design data from the LiDAR images. This could be a matter of researchers not realizing the full potential of such data or believing that, due to their size, processing such datasets might be impractical. To highlight the full potential of LiDAR data in transportation and to address doubts about the feasibility of extracting information from LiDAR images, this paper provides a thorough review of the potential applications of LiDAR in the field of transportation. The paper includes a thorough review of the previous attempts of transportation data extraction from LiDAR while also providing an overview of other applications which researchers are yet to explore. The paper also discusses the challenges associated with the extraction process and future research in this area.