Squid belongs to Cephalopoda, which is abundant in the East China Sea. The processing and drug utilization of marine cephalopods have a long history. In the past 30 years, squid processing industry in China has developed rapidly and has become one of the main components of aquatic products processing industry in China. With the progress of biotechnology and the continuous development and utilization of marine resources, the processing research of squid has gradually deepened. The production and types of processed products such as frozen squid slices, seasoned squid shreds, squid rice and squid seasoning have been constantly enriched. The comprehensive processing of by-products and the extraction, utilization and product development of effective functional components such as anti-tumor, anti-oxidation, immune function regulation, blood lipid and blood pressure lowering and other biological active substances, are also diverse. Squid has become a hot spot for the development and utilization of functional foods and new marine drugs. The current status of squid processing technology is introduced, and the research progress is briefly described from the comprehensive utilization of viscera, skin, ink, eye and cartilage, etc., aiming to provide a basis for the further development and utilization of squid resources in the future.