Loess Plateau is one of the most serious areas of soil erosion in the world and a typically sensitive and ecologically fragile area. It is also key areas of ecological restoration and ecological civilization in China. Biological soil crusts(BSCs)are complex organic integrities of cyanobacteria, bacteria, eukaryotic algae, fungi, lichen and moss, gluing loose soil particles together, and are critical component of the surface system in arid and semi-arid areas, which plays an important role in soil and water conservation, nutrients accumulation and ecological restoration of the Loess Plateau. In this paper, BSCs types and their successional process were reviewed. We summarize microbial and moss diversity in BSCs, and their environmental influencing factors, ecological function, artificial BSCs and ecological restoration in Loess Plateau. The existing problems in previous research were also discussed. In further research, the authors suggest microbial diversity can change from descriptive work to mechanical exploration. More attention should be paid to microbial functional groups in BSCs and their driving effects on the biogeochemical cycle of key elements of C, N and P. Inter-specific relationship among microorganism, spore plant and seed plant should be included in BSCs in Loess Plateau. Future research should focus on the mechanism how cyanobacteria, eukaryotic algae and mosses in BSCs response to key environmental factors such as culture substrate, water, temperature, nutrients and pH. The technical system of artificial BSCs cultivation should be established in laboratory and field, which will lay a theoretical foundation for ecological restoration. This review will be benefited to BSC research in Loess Plateau in China.