The family Cepolidae (bandfishes) is a group of small Perciformes fishes with flat and red body. Most species live in self-made burrows in muddy or fine-sand areas. There is a special larval stage characterized by the enlargement of the superior occipital bone and the operculum.This family is distributed in the tropical and subtropical areas of the Indo-West Pacific and East Atlantic Ocean. It has been recorded sporadically in China. The history and current situation of the study on the family Cepolidae were investigated in detail. The cepolid specimens collected by the major fish research institutions in China was examined, and the development process of larvae and the basic morphology of adult were introduced. The related specimens preserved in the main fish research institutions in China were examined and the species of Cepolidae in China were determined. According to the morphological characteristics,there are 7 species belonging to 3 genera of Cepolidae in China. Citation of scientific name of these species and their countable and quantifiable characters were listed. The morphological characteristics and geographical distribution were briefly described. A key to the classification of genera and species was compiled.