The development and commercialization of aerospace vehicles have posed significant challenges to the performance requirements for the corresponding materials. To meet these challenges, ceramic matrix composites (CMCs) have been developed and are widely used in the aerospace industry. However, their stability under extreme environmental conditions still needs to be improved. In this review, some properties of zirconium carbide (ZrC), which are related to extreme environmental applications of CMC are discussed first. Then, the effect of ZrC on the properties of CMC is comprehensively reviewed. ZrC can be introduced into the matrix and coated on the surface to increase the ablation resistance. The protection mechanisms of ZrC addition to CMCs, and the improvement in ZrC ablation resistance are explained. In addition, some perspectives on future developments are given.