Laser frequency stabilization based on the spectral hole-burning effect in the cryogenic rare-earth-ion-doped crystal makes use of the spectral holes in the absorption of doped ions as the frequency reference. This technique has a low thermal noise limit. In comparison with the laser frequency stabilization technique based on the Fabry-Perot cavity, the proposed laser frequency stabilization technique is more insensitive to temperature, pressure, and acceleration, thereby featuring its viability to let frequency stabilization reach the theoretical limit of 10 -17, which is comparable or even beyond with that of a Fabry-Perot cavity. The laser frequency stabilization technique based on spectral hole-burning effect is introduced from the aspects of theoretical principle, technical realization, and research progress at home and abroad. Furthermore, its development trend in the field of frequency stabilization is prospected.