In recent years, high-power white light-emitting diode (wLED)/laser diode (wLD) lighting sources based on transparent phosphor ceramic (TPC) materials have attracted increasing application interest in automotive headlights, projection displays, and space navigation lighting due to their superior brightness, lighting distance, compactness, lifespan, and environmental resistance compared with the widely used phosphor-converted wLEDs. However, preparing TPC-converted wLEDs/wLDs with high color rendering index (CRI) remains a huge challenge, which limits their widespread application. In this review, we summarize the recently adopted strategies for constructing TPCs to develop high-power wLEDs/wLDs with high CRI values (>75). The construction protocols were categorized into four groups: host regulation, red-emitter doping, host regulation/red-emitter doping combination, and composite structure design. A comprehensive discussion was conducted on the design principles, photoluminescent properties, and device performances for each strategy. The challenges and future trends of high-power and high-CRI wLEDs/wLDs based on TPCs are also discussed toward the end of this review.