This paper reviews the state of the art in computer-aided diagnosis of prostate cancer and focuses, in particular, on ultrasound-based techniques for detection of cancer in prostate tissue. The current standard procedure for diagnosis of prostate cancer, i.e., ultrasound-guided biopsy followed by histopathological analysis of tissue samples, is invasive and produces a high rate of false negatives resulting in the need for repeated trials. It is against these backdrops that the search for new methods to diagnose prostate cancer continues. Image-based approaches (such as MRI, ultrasound and elastography) represent a major research trend for diagnosis of prostate cancer. Due to the integration of ultrasound imaging in the current clinical procedure for detection of prostate cancer, we specifically provide a more detailed review of methodologies that use ultrasound RF-spectrum parameters, B-scan texture features and Doppler measures for prostate tissue characterization. We present current and future directions of research aimed at computer-aided detection of prostate cancer and conclude that ultrasound is likely to play an important role in the field.