A new networking paradigm, Vehicular Edge Computing (VEC), has been introduced in recent years to the vehicular network to augment its computing capacity. The ultimate challenge to fulfill the requirements of both communication and computation is increasingly prominent, with the advent of ever‐growing modern vehicular applications. With the breakthrough of VEC, service providers directly host services in close proximity to smart vehicles for reducing latency and improving quality of service (QoS). This paper illustrates the VEC architecture, coupled with the concept of the smart vehicle, its services, communication, and applications. Moreover, we categorized all the technical issues in the VEC architecture and reviewed all the relevant and latest solutions. We also shed some light and pinpoint future research challenges. This article not only enables naive readers to get a better understanding of this latest research field but also gives new directions in the field of VEC to the other researchers.