Film mulching technology has greatly improved the efficiency of agricultural production. However, it also causes environmental problems such as soil contamination. Biodegradable mulch films, which represent environmentally friendly alternatives, present different characteristics depending on regional differences and crop growth differences. This review was based on the literature and data collected from databases such as the Web of Science. This study provides a comprehensive overview of the development, types and degradation characteristics of biodegradable mulch films. The following conclusions are presented: (1) Applying biodegradable mulch films can conserve water, maintain the soil temperature, improve soil nutrition, increase the soil respiration rate, and promote soil microbial activity. (2) Biodegradable mulch films promote crop root system development, suppress weeds, shorten the crop growth cycle, improve crop emergence rates, and expand the planting range of crops. (3) At present, the incomplete degradability of biodegradable mulch films, their relatively high cost and the potential harm to soil from their degradation products still limit their widespread use in agricultural production. The aim of this study is to provide a reference for future research and for the application of biodegradable mulch films in the hope of promoting their role in the sustainable development of agriculture.