Radar‐rain gauge merging techniques have been widely used to improve the applicability of radar and rain gauge rainfall estimates by combining their advantages, while partially overcoming their individual weaknesses. Despite significant research in this area, guidance on the suitability of and factors affecting merging techniques at the fine spatial‐temporal resolutions required for urban hydrological applications is still insufficient. In this paper, an in‐depth review of radar‐rain gauge merging techniques is conducted, with a focus on their potential for urban hydrological applications. An overview is first given of existing merging techniques and an application‐oriented categorization is proposed: (1) radar bias adjustment methods, (2) rain gauge interpolation methods using radar spatial association as additional information, and (3) radar‐rain gauge integration methods. A detailed review is given of studies focusing on the evaluation and intercomparison of merging methods, based upon which the most widely used and best performing techniques from each category are identified. These are mean field bias adjustment, kriging with external drift, and Bayesian merging. Climatological, operational, and methodological factors affecting merging performance are then reviewed and their relevance for urban applications discussed. Based on this review, conclusions on merging potential for urban applications are drawn and research gaps are identified, which should be addressed to provide further guidance on the use of merging techniques for urban hydrological applications.