The Gravity Recovery and Climate Experiment (GRACE) satellite provides a new method for terrestrial hydrology research, which can be used for improving the monitoring result of the spatial and temporal changes of water cycle at large scale quickly. The paper presents a review of recent applications of GRACE data in terrestrial hydrology monitoring. Firstly, the scientific GRACE dataset is briefly introduced. Recently main applications of GRACE data in terrestrial hydrological monitoring at large scale, including terrestrial water storage change evaluation, hydrological components of groundwater and evapotranspiration (ET) retrieving, droughts analysis, and glacier response of global change, are described. Both advantages and limitations of GRACE data applications are then discussed. Recommendations for further research of the terrestrial water monitoring based on GRACE data are also proposed.