Foam assisted CO2 enhanced oil recovery has attracted increasing attention of oil companies (operators and service companies) and research institutions mainly due to the potentially high benefit of foam on CO 2-EOR. Miscible and immiscible CO2 flooding projects are respectively proven and potential EOR methods. Both methods have suffered from limited efficiency due to gravity segregation, gas override, viscous fingering and channeling through high permeability streaks. Numerous theoretical and experimental studies as well as field applications have indicated that foaming of CO2 reduces its mobility, thereby helping to control the above negative effects. However, there are still various conceptual and operational challenges, which may compromise the success and application of foam assisted CO2-EOR. This paper presents a critical survey of the foam assisted CO2-EOR process to reveal its strengths, highlight knowledge gaps and suggest ways. The oil recovery mechanisms involved in CO2 foam flood, the effect of gaseous and soluble CO2 on the process, synergic effect of foaming agent and ultra-low IFT surfactants, logistic and operational concerns, etc. were identified as among the main challenges for this process. Moreover, the complex flow behaviour of CO2, oil, micro-emulsion and brine system dictates a detailed study of the physical-chemical aspects of CO2 foam flow for a successful design. Unavailability of reliable predictive tools due to the less understood concepts and phenomena adds more challenges to the process results and application justifications. The study highlights the recent achievements and analysis about foam application and different parameters, which cannot be avoided for a successful foam assisted CO2 flood design and implementation. Accordingly, the study also addresses prospects and suggests necessary guidelines to be considered for the success of CO2 foam projects. Copyright 2013, Society of Petroleum Engineers.