Single chain fragment variable (scFv) is a recombinant antibody that has been genetically engineered. scFv retains the targeting properties of antibodies, while acquires properties that intact antibody does not have, such as good permeability, easy diffusion, weak immunogenicity, short in vivo retention time and easy expression, due to its small size. These properties make scFv ideal for diagnostic and therapeutic applications as a target molecule. It can be fused with fluorescent proteins for disease diagnosis and linked to chemical toxins to form immunotoxins for cancer treatment. Chimeric antigen receptor-T technology is a promising technology for cancer treatment by linking scFv to T cells as a targeting molecule. This article reviews the techniques related to the preparation of scFv and some promising clinical and preclinical applications of scFv.