Under the background of China's rapid urbanization, the inadequate practices of urban constructions aggravate urban ecological consequences, including urban flooding, urban water shortage, and ecological degradation. Previous studies have proposed the concepts of low-impact development in urban regions. Based on these concepts and ideas, the definition of a "sponge city" is designated as an sustainable usage of urban water resources according to the urban hydrological processes. Here, we reviewed the relationship between sponge city and urban hydrological process by examining the concept, connotation, and development of the sponge city. The concept of sponge city covers many disciplines, such as the water environment, water resources, water safety, and water ecology. This concept has been continuously integrated and expanded under the concept of global change and urbanization. After summarizing the development trend of sponge cities, we emphasize the urgent need of current and future studies. First, we need to adapt the adapting principles with local conditions more closely. Second, the future study of sponge city should be actively respond to multi-scale climate change. Third, the construction of a sponge city should be based on the urban hydrological processes. Last, the construction of sponge city aims to improve the integrity of urban ecosystems. Finally, we proposed a framework for the optimization of sponge city construction in urban regions. The most important thing is to change the prevailing attitude from a focus on hydrological process to the advocacy of ecological hydrological restoration. In addition, much more focus should be placed on integrating hydrological approaches to improve urban ecological space systems and integrating ecological restoration into urban construction to improve urban resilience.