In the 5G era, the demand for high-bandwidth computing, transmission, and storage has led to the development of optoelectronic interconnect technology. This technology has evolved from traditional board-edge optical modules to smaller and more integrated solutions. Co-packaged optics (CPO) has evolved as a solution to meet the growing demand for data. Compared to typical optoelectronic connectivity technology, CPO presents distinct benefits in terms of bandwidth, size, weight, and power consumption. This study presents an overview of CPO, highlighting its fundamental principles, advantages, and distinctive features. Additionally, it examines the current research progress of two distinct approaches utilizing Vertical-Cavity Surface-Emitting Laser (VCSEL) and silicon photonics integration technology. Additionally, it provides a concise overview of the many application situations of CPO. Expanding on this, the analysis focuses on the CPO using 2D, 2.5D, and 3D packaging techniques. Lastly, taking into account the present technological environment, the scientific obstacles encountered by CPO are analyzed, and its future progress is predicted.