Silver-coated copper powder is a composite material in which silver is coated on the surface of copper. It has the potential to replace silver powder for making pastes, thus cost can be reduced. This paper describes the preparation methods of silver-coated copper powder, including mechanical ball milling, melt atomization and chemical plating. Chemical plating has the advantages of simple equipment and low cost, and has become the most widely used method in the industry. The principle and process of chemical plating are introduced, and the differences between displacement method and reduction method are compared. Futhermore, the coating mechanism of silver-coated copper powder is summarized. This paper also introduces the applications and progress of silver-coated copper powder in the fields of conductive adhesives, electromagnetic shielding coatings and conductive inks. The technical challenges of silver-coated copper powder are identified, the control model of thickness of coating layer is needed to decrease silver content while guarantee anti-oxidation. This review can provide guidance for the preparation method and give a deep understanding on the coating mechanism of silver-coated copper powder.