Abstract: The history of microbial fertilizer in China was reviewed in this article, and the main classification, efficacy, mechanism of action, application in different crops and the problems in the development of this industry were briefly described. Pointing out the microbial fertilizers can improve the environment and the fertility of soil, control the soil-born diseases, increase crop production and reduce the dosage of chemical fertilizers. And it’s the need of developing the "green agriculture" and "ecological agriculture". At present, it still has many problems like whole level is low, lacking of technological innovation, instable of effect and confusion of market management. Therefore, its needs to strengthen the basic research, improve the process, strengthen the supervision and management, increase the capital investment and collaborative innovation. These can promote the microbial fertilizer developing healthy and rapidly.