Industrial upgrading is not only of practical meanings in reality, but also an important theoretical issue. Scholars from all over the world have done lots of research which is based on different theories, and have obtained various conclusions. So far, a consensus has not been formed in theoretical field. First, this paper proposes a connotation of industrial upgrading, and divides industrial upgrading into two categories that are single-industry-Upgrading and structural-industry-Upgrading. Second, it reviews the existing literature in the basis of development economics theory ,value chains theory and modular theory. Finally, it prospects for future possible research directions based on conclusion of reviewing literature.