Knowledge-based decision support systems (KBDSS) have evolved greatly over the last few decades. The key technologies underpinning the development of KBDSS can be classified into three categories: technologies for knowledge modelling and representation, technologies for reasoning and inference and web-based technologies. In the meantime, service systems have emerged and become increasingly important to value adding activities in the current knowledge economy. This paper provides a review on the recent advances in the three types of technologies, as well as the main application domains of KBDSS as service systems. Based on the examination of literature, future research directions are recommended for the development of KBDSS in general and in particular to support decision-making in service industry.