The use of plastic film for mulching cultivation is an important agricultural production technology, which plays an important role in achieving agricultural yield increase and farmers’ income increase. China’s use of plastic mulch ranks first in the world, and China is also the country with the most severe residual plastic mulch pollution in farmland. It is of great significance to have a comprehensive understanding of the use and resource recycling of plastic mulch in China. As a result, this article reviews the recent advances in the use and recycling of plastic mulch in China. First, the types and characteristics of commonly used agricultural plastic mulch are introduced. Then, the development process and application situation of plastic mulch in China are mainly summarized, and the problems of farmland soil and environmental pollution caused by residual plastic mulch are discussed. Finally, the current situation, main practices, and existing problems of waste plastic mulch recycling in China’s farmland are explained in detail from the perspectives of government policy formulation and farmer practice. The research in this article will play an important role in further solving the problem of plastic mulch pollution in farmland soil in China and can also provide a reference for other countries.