Single-mode vertical cavity surface emitting laser (VCSEL) has shown great potential ability in optoelectronic applications such as optical interconnection, optical storage, high-speed laser printing and long-wave communication as a result of its advantages in low-power consumption, small divergence angle, high modulation bandwidth and easy two-dimensional (2D) integration. The top and bottom reflective layers can control its vertical mode excellently, but if we want to obtain a single fundamental transverse mode, we must limit the emergent light in the transverse direction. Recently, with the technique of etching 2D photonic crystal holes into the top distributed Bragg reflector, single fundamental mode photonic crystal VCSEL is made successfully. In this review, we focus on the structure, operating principle, researching progress and application fields, and discuss how to improve the output energy, control the polarization and reduce divergence angle. At last, we present the domestic research situation and prospect of future research.