Polypyrrole (PPy) has attracted widespread attention due to its excellent environmental stability, high conductivity, simple synthesis, good biocompatibility, and reversible redox properties. PPy derivatives not only inherit the advantages of polypyrrole, but also have some unique properties. The side and N-site substitution of PPy can not only yield polymers with good solubility, but it also endows polymers with special functionalities by controlling the introduced functional groups. The performance of copolymers can also be adjusted by the type of monomer or polymerization ratio. In this review, an overview of the different types, main preparation methods, and the application prospects of PPy derivatives reported to date are summarized and presented. The current challenges and future opportunities in this research area are also prospected.