In recent years, there is a growing trend on the research of perceived overqualification. However, scholars mainly pay attention to the effect of perceived overqualification. This study will make the review about the literature of perceived overqualification from the following aspects: first, distinguish and understand the concept of perceived overqualification and subjective overqualification, then straighten out and comment on the relationship between perceived overqualification and employees' work attitude, work performance and creativity, as well as the recent progress of the mechanism of action and boundary conditions. Finally, this paper points out the deficiency of the research of perceived overqualification, the future research direction and the suggestion of combining practice in management.