The Qinghai‐Tibet Plateau (QTP) is the largest permafrost region in the world at low and middle latitudes and high elevation. Permafrost is being degraded on the QTP due to global warming, which has a significant effect on regional climate, hydrological, and ecological processes. This paper provides a summary of recent progress in methods used in permafrost research, the permafrost distribution, and basic data relevant to permafrost research on the QTP. The area of permafrost was 1.32 × 106 km2 over the QTP, which accounts for approximately 46% of the QTP. Moreover, simulation studies of the hydrothermal process and permafrost change were reviewed and evaluated the effect of permafrost degradation on hydrological and ecological processes. The results revealed that the effects of permafrost on runoff were closely related to soil temperature, and the effect of permafrost degradation on the carbon cycle requires further study. Finally, current challenges in simulation of permafrost change processes on the QTP were discussed, emphasizing that permafrost degradation under climate change is a slow and non‐linear process. This review will aid future studies examining the mechanism underlying the interaction between permafrost and climate change, and environmental protection in permafrost regions on the QTP.