Abstract: Muon physics and the application of muon technique is an interdisciplinary research which involves particle physics, material science, condensed matter physics, biomolecular science, and archaeology. Many important researches have been done and published in these areas by scientists from North America, Europe, and Japan. Due to the lack of accelerator-based muon source in China, Chinese research groups in these fields mainly rely on overseas muon facilities or on joining international collaborations. Some recent major progress on muon physics and muon technique application, and the prospects of the design, construction, and application of the accelerator-based muon source in China were reported in this paper.