Oxy-fuel combustion is a reliable way for the reduction of pollutants, the higher combustion efficiency and the separation of carbon dioxide. The review of recent research trends and the prospects of oxy-fuel combustion were presented. The difference in characteristics among oxy-fuel combustion, conventional air combustion, oxy-fuel combustion with flue gas recirculation (FGR) technique was investigated. Recent experiments of oxy-fuel combustion with/without FGR were surveyed in various ways which are optimized burner design, flame characteristics, the soot emission, the radiation effect, the NOx reduction and the corrosion of combustor. Numerical simulation is more important in oxy-fuel combustion because flame temperature is so high that conventional measurement devices have a restricted application. Equilibrium and non-equilibrium chemical reaction mechanisms for oxy-fuel combustion were investigated. Combustion models suitable for the numerical simulation of non-premixed oxy-fuel flame were surveyed.