Laser transmission welding (LTW) is an excellent process for joining plastics and is widely used in industry. Numerical simulation is an important method and area for studying LTW. It can effectively shorten the experimental time and reduce research costs, aid in understanding the welding mechanism, and enable the acquisition of ideal process parameters. To enhance understanding of numerical simulation studies on LTW and facilitate research in this area, this paper presents a comprehensive overview of the progress made in numerical simulation of LTW, covering the following aspects: (a) characteristics of the three heat source models for LTW temperature field simulation, including surface heat source model, volumetric heat source model, and hybrid heat source model, along with the methods, results, and applications of temperature field simulation based on these models and experimental validation; (b) numerical simulation of thermal and residual stresses based on the temperature field; (c) numerical simulation of the melt flow field; and (d) predictive simulation of material degradation. The conclusion of the review and the prospects for further research work are eventually addressed.