Metal halide perovskites have shown excellent optoelectronic properties, including high photoluminescence quantum yield, tunable emission wavelength, narrow full-width at half-maximum and low-cost solution-processed fabrication, which make it exhibit great potential as the emission layer materials of light emitting diodes. With the joint efforts of researchers from different disciplines, there has been a significant progress in the improvement of external quantum efficiency (EQE) and stability of perovskite light emitting diodes (PeLEDs) in recent few years, especially in green PeLEDs with EQE over 30%. In this review, we firstly introduce the basic device structure of PeLEDs, as well as the factors influencing EQE and stability of PeLEDs. Secondly, the development of lead-based and lead-free PeLEDs are summarized systematically. Thirdly, challenges of PeLEDs are discussed in detail, including low EQE of blue PeLEDs, poor device stability and EQE roll-off. Finally, some suggestions and perspectives of the future research directions for PeLEDs are proposed.