The urgent need for high-precision azimuth measurement in the engineering field makes magneto- optical modulation azimuth measurement technology one of the key research directions in the domestic azimuth measurement field. The basic principle of magneto-optical modulation azimuth measurement technology is introduced. The research progress made in improving the azimuth measurement accuracy, reducing the synchronization time and data processing of the azimuth measurement is analyzed, and the technology development trend is discussed. The thesis is of reference value for the development of high-precision azimuth measurement technology and device required for the azimuth reference transfer research.