Anaerobic digestion is a widely applicated technology for the treatment of wastes. Though it has been developed for many years, there are still some existing problems that need to be solved especially when it is used in a large scale in China. Substantial researches have been carried out and tried to increase biogas production and treatment efficiency in anaerobic digestion. In this review, the development and problems existed in anaerobic digestion are summarized like raw materials, indicators; hydrogen sulfide, ammonia; temperature, optimization, biogas slurry and residues in order to supply the suggestions for the researchers for the further development of anaerobic digestion and its application in a large scale in China.