Abstract: Recently, there have been significant experimental advances in the high-performance operation of tokamak plasmas with magnetic islands. Motivated by this, we present recent progress in the theoretical understanding of dynamics and roles of shear flows in the vicinity of a magnetic island in toroidal magnetic fusion plasma. Since the shear flows are well known to be crucial in turbulence suppression and transport barrier formation in the fusion plasmas, our focus would be on the various candidate mechanisms of confinement enhancement in the presence of a magnetic island, rather than addressing the negative effects of the island on confinement, which are relatively better known from the past. Accordingly, recent progress will be summarized from the perspective of multi-scale interactions among microturbulence, shear flows, and the magnetic island, highlighting the roles of the shear flows mediating the interactions.