Organic-inorganic hybrid perovskites manifest unique photophysical properties in terms of long carrier lifetime, low recombination rate and high defect tolerance, enabling them promising candidates in optoelectronic devices. However, such advancing properties are unexpected in the perovskite materials with moderate charge mobility. Recent investigations have revealed that these appealing properties were endowed as the formation of large polarons in perovskite crystals due to the coupling of photogenerated carrier and polarized crystal lattice, which largely affected carrier transport dynamics and structural stability of perovskite solar cells (PSCs). In this review, crystal structure of perovskite lattice and formation mechanism of polaron are firstly elucidated. And then, the modulation of polaron states in PSCs including large polaron stabilization, polaron facilitated charge transport, hot carrier solar cells, and polaron related stability issues such as polaron induced metastable defects, polaronic strain, photostriction are systematically investigated. In the end, prospect in the further understanding and manipulation of polaron related phenomenon towards highly efficient and stable PSCs is suggested.