Caffeic acid phenethyl ester is a natural active compound derived from propolis and other plants such as Rhodiola. It has become a research hotspot in recent years because of its wide range of pharmacological activities, such as anti-inflammatory, anti-oxidation, anti-tumor, cardiovascular and neuroprotective effects. In this paper, the pharmacological activity and mechanism of caffeic acid phenethyl ester were reviewed, in order to promote the further development and application of caffeic acid phenethyl ester.