Wire-bonding technology is the most commonly used chip interconnection technology in microelectronic packaging. Metal bonding wire is the key material for wire bonding and plays an important role in the reliability of electronic devices. In recent years, palladium-plated copper (PdCu) bonding wire has been widely used because of its low cost, good electrical and thermal conductivity, the fact that it is not easy to oxidize, and its high reliability. Therefore, it is necessary to review its research progress. In this paper, the preparation and application of palladium-plated copper bonding wire are reviewed. Firstly, the preparation methods of electroplating, electroless plating, and direct plating are introduced. Secondly, the factors affecting the distribution of Pd in free air balls and bonding interfaces, the effect of Pd on the formation and growth of intermetallic compounds in PdCu wire, stitch bond, and reliability of PdCu wire are summarized and analyzed in the application process. Finally, its development prospect is prospected. Hopefully, this review can help readers to have a comprehensive understanding of the preparation and application of palladium-plated copper bonding wires, and can accelerate the promotion of its application in more fields in the future.