Severe pressure from energy consumption and serious pollution from non-renewable resources have urged human beings to develop green and energy-efficient materials. Transparent wood, consisting of original wood channel structure filled with resins, has favorable environmental friendliness and high transparency and haze, which holds huge potential in various important fields. Herein, a brief review of the current research activities centered on the development of transparent wood is provided. This review begins with an introduction to the background of transparent wood. Next, the cellular wall structure of wood and the synthetic strategy of transparent wood (including decolorization and impregnation) are summarized. Furthermore, the functionalization of transparent wood through doping nanomaterials or modifying resins is highlighted, and the relationship between the physicochemical properties and the potential uses (like optoelectronics, building materials, and furniture decoration) of transparent wood is clarified. Finally, a brief overview of the prospects and challenges for transparent wood is provided.