Compared with the traditional edge emitting semiconductor lasers, the vertical cavity surface emitting laser (VCSEL) shows many advantages, such as good beam quality, low threshold current, easy fabrication in two-dimensional arrays and low cost. In recent years, the electrically pumped and optically pumped vertical external cavity surface emitting laser (VECSEL) developed on the basis of VCSEL is a very competitive light source in the laser field. It can realize intracavity frequency doubled, tunable wavelength and mode-locked lasers technology by inserting corresponding optical element within the cavity, and obtain high output power and beam quality. We introduce the structures, working principles and performance advantages of VCSEL and VECSEL. The research status and latest progress including high power, tunable operation, and mode-locking lasers are reviewed. The development prospect of VCSEL and VECSEL are discussed.