Under physical conditions such as TC = 68 °C, Vanadium dioxide (VO2) undergoes a reversible transformation from a monoclinic phase to a tetragonal rutile phase. This transformation is accompanied by a series of changes in physical properties, including transmittance, conductivity, and refractive index, which make it an excellent functional material. Based on this, VO2 has been extensively researched and applied in the fields of electronics and optics, yielding remarkable results and making it a hot research material. This paper reviews the phase transition mechanisms and optical/electrical properties of VO2, as well as its phase transition hysteresis. From the application perspective, this paper summarizes the modulation content under various external excitations and the element doping effects. Finally, this paper summarizes the classic VO2‐based devices, and points out the development direction and potential of VO2 in optics and electronics. This review provides a systematic summary of VO2, which is useful for its practical applications.