Oil and gas explorers around the world have gradually shifted their attention to complicated geological reservoirs, such as deep or ultra-deep, unconventional, and deepwater reservoirs. Against this trend, drilling fluids must meet stricter requirements, making the drilling in such reservoirs safe, fast, efficient, and environmental-friendly. Recent years has seen the emergence of environmental-friendly, high-performance waterbased drilling fluids, which boast comparable performance as oil-based drilling fluids. Some high-performance water-based drilling fluids have been developed specifically as per the technical requirements of drilling into complicated geological reservoirs. However, China lags far behind in the development of environmental-friendly, highperformance water-based drilling fluids. This paper summarizes the latest technical progress on environmental-friendly, high-performance water-based drilling fluids at home and abroad from three aspects, namely, environmental-friendly, high-performance water-based drilling fluids, environmental-friendly drilling fluid additives, and environmental evaluation methods for drilling fluids. Moreover, the development trend of the technology of environmental-friendly, high-performance water-based drilling fluids was discussed, providing a reference for further research into environmentalfriendly, high-performance water-based drilling fluids.