We briefly review the development of gain-switched rare-earth-doped fiber lasers and their applications in wavelength conversion to mid-IR, supercontinuum generation, and medicine in recent years. We illustrate the similarities between gain-switching and Q-switching techniques that will provide tools for the design and optimization of the gain-switched fiber lasers. From the nature of the gain-switched fiber lasers, benefits of this kind of lasers to 2-μm region and in-band-pumped (two-level system) laser systems are obvious. Advantages of in-band-pumped 2-μm lasers are discussed and analyzed with a simple numerical simulation in terms of Tm-doped fiber lasers. We also propose the key factors in the development of the gain-switched fiber lasers and predict the future tendency.