As a comprehensive theory of psychology and behavioral science，the prospect theory was proposed by Kahneman and Tversky in 1979. Many scholars have made a tentative refinement of the theory and applied it to various areas. On the basis of summing up the current researches of emergency response decision-making at home and abroad，in view of complexity，dynamic and multi-stage of emergency，this paper reviews the development of prospect theory and its related basic models. Then，considering lack of behavior factors of decision makers in traditional decision analysis methods，the researches of prospect theory in the emergency action plan of emergencies are summarized. Finally，future research direction and application of prospect theory in the field of emergency decision-making are further discussed.