Water-lubrication bearings are critical components in ship operation. However, studies on their maintenance and failure detection are highly limited. The use of sensors to continually monitor the working operation of bearings is a potential approach to solve this problem, which is collectively called intelligent bearings. In this literature review, the recent progress of electrical resistance strain gauges, Fiber Bragg grating, triboelectric nanogenerators, piezoelectric nanogenerators, and thermoelectric sensors for in-situ monitoring is summarized. Future research and design concepts on intelligent water-lubrication bearings are also comprehensively discussed. The findings show that the accident risks, lubrication condition, and remaining life of water-lubricated bearings can be evaluated with the surface temperature, coefficient of friction, and wear volume monitoring. The research work on intelligent water-lubricated bearings is committed to promoting the development of green, electrified, and intelligent technologies for ship propulsion systems, which have important theoretical significance and application value.