GaN-based vertical-cavity surface emitting lasers (VCSELs) have undergone rapid advancement in the past 20 years and are considered a research hotspot for next generation semiconductor lasers. GaN is a versatile material for fabricating optoelectronic devices in ultraviolet, blue-violet, and green bands. The characteristics of VCSELs include output beam with circular symmetry, low thresholds, low divergence angles, and high-modulation speeds. In this paper, the development history of GaN-based VCSEL was first reviewed and some of their applications were discussed. Moreover, key challenges in the design and manufacturing of mirrors and cavities were discussed. Further, the heat dissipation mechanism of GaN-based VCSELs with three different structures and their optimization strategies were analyzed and discussed. Finally, research progress and latest advancements in GaN-based blue, green, and ultraviolet VCSELs were reviewed.