Drilling ?uid circulation loss is referred to as “the most severe problem in drilling of oil and gas wells”. Formation pressure and fracture, as objective factors in drilling process and the influence of drilling fluid density, produce induced fractures, which directly affect the occurrence and treatment of loss. In the process of balance pressure drilling in fractured carbonate formation, fluid loss is possible when the hole penetrates the fracture. The understanding of lost circulation mechanism and the development of lost circulation materials determine the success. The review highlights the latest achievements in the aspects of lost circulation mechanism, types of lost circulation materials, drilling ?uid formulation and technology. In addition, the engineering methods of well prevention, such as well strengthening, and the advantages and disadvantages of the methods for determining the leakage layer are also introduced. Finally, some suggestions are given, which can be used for reference in the future.