This paper introduces several main methods of fractured reservoir characterization and modeling, and summarizes their essential advantages and disadvantages. The main methods for fracture characterization include field study, core and well logging, seismic prediction, dynamic response analysis, mechanical analysis, and rock mechanical analysis. And fracture modeling is conducted mainly with by DFN (discrete fracture network) and equivalent continuum modeling. This paper reviews the application of fractal theory to outcrop fracture analysis of volcanic rocks, the application of digital core technique to micro fracture characterization, several most recent geophysical and mechanical fracture characterization and prediction methods, the impact of dynamic fracture on reservoir development, fracture stratigraphy theory proposed abroad lately, fracture characterization in unconventional reservoir, and finally the above two fractured reservoir modeling methods. On the basis of all above, challenges for fracture characterization and modeling and future research in this field are pointed out.