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Yushenfu mining area is located in an ecological fragile area in western China, the coal seam of which is the Jurassic Yan’an Formation. The Jurassic Yan’an Formation contains five minable coal seams, the top layer of which is thick, covered by shallow overburden and located under aquifers. Therefore, the mining induced water flowing fractured zone can easily extend to the aquifers of both the Quaternary Sarahu and Jurassic Zhiluo Formation. This would result in a series of negative hydrological and ecological effects, including groundwater leakage, groundwater lowering, furtherly causing surface vegetation withering and dying, surface water body reduction, spring drying out, and water flow of river being decreased substantially. To solve these environmental problems, several technologies have been carried out by Chinese scientists, one of which is water-preserved coal mining. This paper presents a review of the origin, definition and development of water-preserved coal mining, and its applications in Yushenfu mining area. The applicable conditions, research contents, research methodology, and technical foundation of water-preserved coal mining are addressed in this paper. The future research focuses regarding water-preserved coal mining in China are also discussed in this paper. Its results serve as a guide for selecting the methods to be preferred for mining in case the geological conditions, roof overburden structure and coal mining process are similar to Yushenfu mining area.