Cavity optomechanical systems have been shown to exhibit an analogon to atomic electromagnetically induced transparency that a transmission window for the propagation of the probe field is induced by a strong control field when the resonance condition is met. Sharp transmission features controlled by the control laser beam enable many applications ranging from force sensors to quantum communication. In recent years, there has been significant progress in both theoretical and experimental studies of this phenomenon, driven by the development of nanophotonics as well as the improvement of nano-fabrication techniques. Optomechanically induced transparency has been found to manifest in numerous different physical mechanisms, e.g., nonlinear optomechanically induced transparency, double optomechanically induced transparency, parity-time symmetric optomechanically induced transparency, and optomechanically induced transparency in various hybrid optomechanical systems, etc. These results offer a pathway towards an integrated quantum optomechanical memory, show the utility of these chip-scale optomechanical systems for optical buffering, amplification, and filtering of microwave-over-optical signals, and may be applicable to modern optical networks and future quantum networks. Here, we systematically review the latest research progress on the fundamentals and applications of optomechanically induced transparency. Perspectives and opportunities on future developments are also provided by focusing on several promising topics.