Capacitive power transfer (CPT) uses an electric field as the transfer medium to achieve wireless power transfer (WPT). Benefitting from the low eddy current loss, simple system structure and strong plasticity of the coupling coupler, the CPT system has recently gained much attention. The CPT system has significantly improved transfer power, system efficiency, and transfer distance due to continuous research and discussion worldwide. This review briefly presents the basic working principle of the CPT system and summarizes the theoretical research in four aspects, including coupling coupler and high-frequency power converter. Following this, the review focuses on research in six key directions, including system modelling and efficiency optimization. The application of CPT technology in five fields, including medical devices and transportation, is also discussed. This review introduces the progress of CPT research in recent years, hoping to serve as a reference for researchers, to promote the further research and application of the CPT system.