The performance of the refrigeration system mainly depends on the hermetic compressor. Of different compressors used in the refrigeration and air conditioning industries, hermetic reciprocating compressors are still efficient and have its place in domestic applications. This paper presents a review of most critical parameters and their influence on the hermetic reciprocating compressor performance. A detailed study is done on parameters like backflow, effective force and flow areas, valve dynamic behavior, etc. This study mainly concentrated on compressor valves which influence the performance of the hermetic compressor to a much greater extent. Finally, the study reveals that these parameters are playing a vital role in influencing the performance of the refrigeration system. Advanced numerical techniques involving combining fluid flow and structural analysis involving Fluid Structure Interaction (FSI) may give a better insight of the flow physics happening inside the compressors and the effect of fluid force on valve fluttering, back pressure and dynamics characteristics can be revealed in depth to optimize the performance of the hermetic compressor for household applications involving air conditioners, refrigerators, water coolers, chillers, etc.