Shotcrete lining shows high resistance but extremely low deformability. The utilization of yielding elements in shotcrete lining, which leads to the so-called ductile lining, provides a good solution to cope with tunnel squeezing deformations. Although ductile lining exhibits great advantages regarding tunnel squeezing deformation control, little information has been comprehensively and systematically available for its mechanism and design. This is a review paper for the purpose of summarizing the development history and discussing the state of the art of ductile lining. It begins by providing a brief introduction of ductile lining and an explanation of the importance of studying this issue. A following summary of supporting mechanism and benefits of ductile lining used in tunnels excavated in squeezing ground conditions is provided. Then, it summarizes the four main types of yielding elements applied in shotcrete lining and introduces their basic structures and mechanical performances. The influences of parameters of yielding elements on the supporting effect are discussed and the design methods for ductile lining are reviewed as well. Furthermore, recommendations for further research in ductile lining are proposed. Finally, a brief summary is presented.