Due to its real-time, non-radiation based three-dimensional (3D) imaging capabilities, ultrasound (US) has been incorporated into various orthopedic procedures. However, imaging artifacts, low signal-to-noise ratio (SNR) and bone boundaries appearing several mm in thickness make the analysis of US data difficult. This paper provides a review about the state-of-the-art bone segmentation and enhancement methods developed for two-dimensional (2D) and 3D US data. First, an overview for the appearance of bone surface response in B-mode data is presented. Then, classification of the proposed techniques in terms of the image information being used is provided. Specifically, the focus is given on segmentation and enhancement of B-mode US data. The review is concluded by discussing future directions of research and additional challenges which need to be overcome in order to make this imaging modality more successful in orthopedics.