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The optimization of dam operations to transform them into multi-objective facilities constitutes a challenge for both hydrology, hydrogeology, and hydropower generation. However, the use of the optimal algorithm for such transformation is critically important. Additionally, the literature has highlighted that dams might negatively influence the recharge of groundwater. Within this study, we provide an overview of the available algorithms for the optimization of dam operations. Additionally, an overview focusing on hydropower generation in Greece illustrates the high potential of the Mediterranean region for hydropower generation and the application of MAR. The water quality of the reservoirs is also highlighted as a critical parameter. Within this study, we present indices for water quality monitoring in dam reservoirs, while the most prevailing index is the SRDD. This study constitutes a guide for researchers in choosing the optimal tools for the optimization of dam operations and the water quality monitoring of reservoirs. The present study suggests a meta-heuristic optimization methodology using the harmony search algorithm. The model uses a geometric model of the reservoir and calculates the level–supply curve. Furthermore, a multi-criteria optimization model was developed with two objective functions: the maximum power output from the hydroelectric power plant turbines and the optimal groundwater recharge. The model with appropriate parameter modifications can be applied to any small dam as it is a decision- and policy-making methodology, independent of local conditions. A further step is the application of these approaches dealing with field data and the numerical modeling of case studies. The interdisciplinary approach of this study links deferent aspect and scientific perceptions, providing a comprehensive guide to optimal water resource management and environmental sustainability. [ABSTRACT FROM AUTHOR]