Pyrethroids are a kind of biomimetic insecticides with high hydrophobicity. When they are applied in the environment, they will be easily adsorbed by particulate matters or oil droplets, and finally accumulated to sediment. They have been, unfortunately, detected in sediment in areas where pyrethroids have been used or not. This paper introduced the sources, fate and biological effects of pyrethroids. It also provided a key review concerning the impact of pyrethroids’ adsorption/desorption, degradation and wetland ecosystems on their fate. At the same time, it introduced pyrethroids’ aquatic toxicity, bioaccumulation and other biological effects; and it also commented on the effects of the biological availability of pyrethroids’ toxicity. The paper can provide useful reference in aquatic ecological risk assessment.