Photocatalysis, which can be applied to get energy economically, to synthesize useful materials, and to remove environmentally harmful materials by transforming solar energy to chemical energy, has many advantages over conventional heterogeneous catalysis. In this review article, both heterogeneous and homogeneous photocatalyses were discussed focusing on the principles of photocatalysis, the modification of the photocatalysts, hydrogen formation by water decomposition, and environmental application of photocatalysis.