Voltage source converter based high voltage direct current (VSC-HVDC) technology has unique advantages in island power transmission, offshore wind power DC transmission, etc. It is the development direction of DC transmission in the future. This paper summarizes the development status and application prospect of VSC-HVDC, including the research progress of key equipment such as power electronic devices, flexible DC converter valve, HVDC circuit breaker, flexible DC transformer and DC cable, and the landmark VSC-HVDC projects in China. The application prospects of VSC-HVDC in large-scale new energy consumption, offshore wind power DC transmission, multi terminal DC and DC power grid, long-distance high-capacity overhead line DC transmission, DC distribution network and island power transmission are pointed out.