Spacecraft propulsion system is a kind of rocket engine that has been developed from the end of 1950s for attitude control and orbit maintenance of satellite. Since the spacecraft propulsion system has to be used for a relatively long time, therefore, stability of propellant and life of thruster could be very important factor for propulsion system design. Recently, green propellant propulsion and all electrical propulsion system have became very important issue, and we also need a development according to well organized plan. In this paper, we will introduce the development status, key technologies and development prospect of spacecraft propulsion system.