Bronchopulmonary dysplasia (BPD) is a chronic lung disease and it seriously threatens the health of premature infants. Its pathogenic mechanism and risk factors are numerous. There is lack of ideal prevention and treatment in clinic. Caffeine clinically is the first line of prevention and treatment for BPD and it can reduce the incidence of BPD and improve the severity of the disease. But the specific mechanism of caffeine is not clear. Recent studies have found that caffeine inhibits a variety of BPD risk factors and promotes lung maturation. This article reviews the related research of caffeine in preventing BPD.