This paper systematically discusses the basic theoretical research on the control volume, thrust characterization, waterjet propulsion and their interaction of the waterjet propulsion system, and the key design methods, relevant simulation evaluation and test verification methods of the waterjet propulsion system of the waterjet propulsion pump, inlet duct, steering and reversing mechanism and low-noise propulsion system. It also discusses the current status of the typical applications of waterjet propulsion devices in the three major fields of high-speed military vessels, civilian ships and amphibious vehicles. According to the characteristics of waterjet propulsion technology and its integration with the development of modern technology, the development trends of the waterjet propulsion technology are proposed, including the integrated system design of the waterjet propulsion and the ship, the hydrodynamic design from macro to micro, the digital and intelligent technology of the waterjet propulsion, the integrated electric-driven waterjet propulsion system, and the coordination design of the waterjet propulsion for stealthiness.