Citrus peel essential oil is consisted of monoterpene, sesquiterpene and containing oxygen derivatives, which is not only harmless to human and has good smell, but also has antimicrobial activity as substitution of chemical bactericide. The antimicrobial effect of citrus peel essential oil is closely related to the containing oxygen derivatives in its terpenes. Citrus peel essential oil can destroy the cell structure and affect metabolic pathways to inhibit micro-organisms. Citrus peel essential oil can be used in food preservation and fungi hazard control of garden stuff by different methods, such as direct addition, fumigation or coordinated use with other methods. The antimicrobial effects, mechanisms and application of citrus peel essential oil are summarized in order to provide a reference for further application in food industry.