Abstract: The carbon fiber reinforced magnesium matrix (C_f/Mg) composites are considered as the most promising structural materials with great potential in both aerospace and automotive applications, which have high specific strength, high specific stiffness, excellent thermal conductivity, great electrical conductivity and good damping properties, as well as close to zero thermal expansion coefficient and good dimensional stability. In the present review, the craft principles and characteristics, as well as the current development status and the key technical problems of powder metallurgy, diffusion bonding, squeeze casting, etc that can be used to prepare C_f/Mg composites are discussed deeply. Then the new progresses made in the preparation of C_f/Mg composites in recent years are hackled. Furthermore, engineering application cases of C_f/Mg composite that have a significant promotion effect and potential application prospects in the fields of national defense and national economy are introduced. Additionally, the facing challenges of C_f/Mg composite are analyzed, and the future development directions are prospected.