This paper evaluated the function and importance of aqueous polyurethane dispersions. The research development of aqueous polyurethane dispersions was reviewed, too. The methods for preparing aqueouos polyurethane dispersions were summarized. It was told that the main method was that in the systems of aqueous polyurethane dispersions both vinyl group and isocyanate group were used simultaneously to form interpenetrating polymer networks. Finally the application development trend of aqueous polyurethane dispersions was pointed out.