Microwave absorbing coating is usually made up of absorber and matrix.Carbonyl iron powder is classical absorbing agent of magnetic medium type and is attracting more and more investigation for its wide absorbing frequencies range.The design and optimization of microwave absorbing coating means adjusting the composition,volume fraction of absorbing agents and thickness of coating to get a good absorbing performance.Microwave absorption theory and effective medium theory are fundamental knowledge to do design and optimization of microwave absorbing coating.The microwave absorbing theory,the methods of design and optimization of microwave absorbing coating are introduced.Some kinds of application of carbonyl iron powder in microwave absorbing coatings are listed finally.