The performance of lithium-ion batteries is closely related to temperature, and much attention has been paid to their thermal safety. With the increasing application of the lithium-ion battery, higher requirements are put forward for battery thermal management systems. Compared with other cooling methods, liquid cooling is an efficient cooling method, which can control the maximum temperature and maximum temperature difference of the battery within an acceptable range. This article reviews the latest research in liquid cooling battery thermal management systems from the perspective of indirect and direct liquid cooling. Firstly, different coolants are compared. The indirect liquid cooling part analyzes the advantages and disadvantages of different liquid channels and system structures. Direct cooling summarizes the different systems’ differences in cooling effectiveness and energy consumption. Then, the combination of liquid cooling, air cooling, phase change materials, and heat pipes is examined. Later, the connection between the cooling and heating functions in the liquid thermal management system is considered. In addition, from a safety perspective, it is found that liquid cooling can effectively manage thermal runaway. Finally, some problems are put forward, and a summary and outlook are given.