Underwater terrain matching navigation technology is an important research area for the underwater navigation of Autonomous Underwater Vehicles (AUVs). Terrain matching navigation can realise long-term, subtle, all-weather, and high-precision underwater AUV navigation. In this paper, the research status of the application of AUV underwater terrain matching navigation is reviewed, the system composition, theory and terrain matching methods of underwater terrain matching navigation are summarised and the advantages of a multi-beam bathymetric system in underwater terrain matching navigation are discussed. The current research thoughts are summarised, the key issues are pointed out, and possible future development trends are discussed.