Integrating renewable energy resources such as photovoltaic system with diesel generator in a hybrid power system is widely spread in the worldwide due to the economic and technical aspects. These systems prove their feasibility in the remote areas, where the grid extension is not available. An optimum dispatch strategy for these systems is a very important factor that affects the cost of the energy generated. Therefore, the main objective of this review is to show the state of art of hybrid photovoltaic/diesel generator system control strategies. Research work in the period of 1998–2014 is covered and analyzed. In addition to that, a summary of the latest technologies in this field is provided. Finally, challenges to this science are concluded. These challenges are accurate estimation of load demand and meteorological data, system performance prediction, system’s component models, optimal sizing of the system and operation set points optimization. In optimizing the operation set points there are many aspects to consider such as system reliability, emitted emission by the system and the cost of the energy generated.