This study has been attempted to present the state of art review on the research work carried out for the operation of wind and pumped storage plant (Wind–PSP) under deregulated market. Due to the uncertain characteristics of the wind, power generated by wind turbines is mostly variable and may affect the power system operation. Therefore integrated operation of Wind–PSP requires the knowledge of various factors such as: technology/concept to be used, number and capacity of the generating units, control, management, scheduling and cost of imbalance etc. In order to overcome the effect of variability and above said factors, a joint operation of a wind turbine and energy storage systems (ESS)/technologies is required. Among all the ESSs, PSP is the most mature and large capacity system, which can compensate the wind power uncertainties optimally. Variable operations of PSP, balance the load and generation uncertainty, and thus enhance the ability of power system to incorporate wind power. The present study has been aimed to cover the review of basics of wind energy, PSP, Wind–PSP system and their current status, applications and challenges involved with Wind–PSP, Operation of Wind–PSP under deregulated market and optimization techniques used in the scheduling of Wind–PSP system. An attempt has also been made to compare the techniques suitable for scheduling of Wind–PSP systems based on earlier research.