Plants have evolved complex terpene defenses. Terpenoids accumulate in plant tissues or release as volatile in response to ever-changing environment, playing essential roles in chemo-ecological functions as defense against pathogen and insect, improving pollination and seed dispersal, facilitation plant-to-plant communication. They are also gaining attention in pharmaceuticals, nutraceuticals, fragrance, and biofuels. Here, we highlight the recent progress in the fundamental pathways of terpenoid biosynthesis, key enzymes, and their corresponding genes involved in terpenoid synthesis. We identified the further exploration of biosynthetic networks and the development of novel terpenoid resources, proposed the need for further exploration of biosynthetic networks and the development of novel terpenoid resources. Based on that knowledge, future research should be directed towards the mechanisms governing terpenoid biosynthesis dependent environmental change and molecular breeding.