With the increasing number of space activities, HVI (hypervelocity impacts) caused by space debris and micrometeoroids have become a major threat to the safety of spacecraft in orbit. Such collisions not only result in mechanical damage but also generate plasma, whose electromagnetic effects pose severe risks to highly integrated spacecraft electronic systems. A systematic review of plasma physical effects induced by hypervelocity impacts was provided.The review covered the mechanisms of plasma generation, kinetic characteristics, electromagnetic radiation, and induced discharge, encompassing both theoretical and experimental progress. Special emphasis was placed on the introduction of condensed-phase products (dust grains) in hypervelocity impacts and the resulting dusty plasma effects. This review aims to offer researchers in the field a comprehensive literature summary and to highlight key scientific questions and future research directions. Ultimately, it seeks to provide theoretical support for enhancing the survivability of spacecraft in orbit and for developing next-generation electromagnetic protection technologies.