Abstract: As a new method of multibody system dynamics, the transfer matrix method of multibody system has the following characteristics: without the global dynamics equation of system, low order of matrix involved, high efficiency. It has been widely used in the dynamic design of many complex mechanical systems, such as multiple launch rocket system, self-propelled artillery system, and warship gun system. In this paper, the advances in transfer matrix method of multibody system, including linear transfer matrix method of multibody system, discrete time transfer matrix method of multibody system, transfer matrix method of two-dimension system, transfer matrix method of controlled multibody system, and the mixed method of transfer matrix method of multibody system and ordinary dynamics methods, are presented. Some engineering applications of this method on self-propelled artillery system and multiple launch rocket system are also given.