Soil hydraulic properties, defining a soil's capacity to store, transmit, and redistribute water, are fundamental to hydrological processes. Investigating the agents that influence these properties is therefore critical for the sustainable management of soil and water resources. This is particularly vital in arid regions, where the enhancement of soil hydraulic characteristics can significantly improve rainwater infiltration, concurrently conserving water through the reduction of surface runoff and evaporative losses. While the impact of soil physico-chemical properties on hydraulic characteristics is well established, the contribution of soil-dwelling fauna is still unwell understood and often overlooked. This review synthesizes current knowledge on how these organisms (soil-dwelling fauna) engineer soil properties and describes their influence. Soil-dwelling fauna, predominantly invertebrates, function as critical bioturbators that engineer soil hydrology. Through the creation and maintenance of biopores, these organisms directly enhance soil hydraulic conductivity, preferential flow paths, and infiltration rates, while concurrently improving overall soil structur stability. Furthermore, through bioturbation, soil fauna enhance aggregate stability, redistribute organic matter, and mitigate soil compaction. These activities collectively improve critical hydraulic properties, bolster erosion control, and increase soil fertility, thereby supporting sustainable soil and water management. While soil fauna such as earthworms, dung beetles, termites, ants, and mole crickets are recognized as key bioturbators enhancing soil hydraulic properties, the magnitude and efficacy of their effects are highly contingent upon species identity, environmental context, and temporal dynamics. Conversely, the excavation of extensive tunnel networks by some soil-dwelling vertebrates can destabilize soil architecture, promoting its degradation and accelerating erosion. Overall, the influence of soil fauna on hydraulic properties is not universal but varies according to body size of organisms, excavation methods, burrow architecture, bioturbation modes, and adaptive behaviors across heterogeneous environments. These findings highlight the complex role of soil-dwelling fauna in shaping soil-water interactions and hydraulic properties.