Abstract: Water-jet guided laser cutting technology is a new type of cutting method which utilizes the water jet to guide the laser to the machining plane. It has been widely concerned by many researchers for its superiorities of small heat affected zone, high precision and no pollution. In this paper, the principle of laser total reflection at the interface of air and water used by water-jet guided laser is firstly introduced, and its advantages compared with conventional laser cutting are also expounded. Besides, the domestic and international research progress of water-jet guided laser cutting is reviewed in term of theory and process. The development status of water-jet guided laser equipment is summarized. Finally, the technical difficulties of water-jet guided laser cutting are analyzed, and the future development trend of this technology is expected.