Magnesium oxychloride cement (MOC) has many advantages, such as high strength, strong adhesion, wear resistance, impact resistance, low alkalinity and low corrosion, and so on. As a kind of inorganic adhesive and cementitious material, it has been widely used in many industries including wood processing. However, the poor water resistance of MOC seriously affects its large-scale application and industrialization. Therefore, how to improve the MOC water resistance under the condition of ensuring the mechanical property has become a hot topic in the MOC research field. In this paper, the recent progress on the improvements of MOC water resistance both at domestic and abroad was reviewed, and different modification methods of distinct admixtures were emphatically summarized, as well as its mechanism. Finally, the prospects of MOC in wood industry and other application fields were discussed, which would provide theoretical and technical guidance in the development of high-performance MOC.