Traffic signal optimization is a significant means for smoothing urban traffic flow. However, the operation of traffic signals is currently seriously constrained by the data available from traditional point detectors. In recent years, an emerging technology, connected vehicle (CV), which can percept the overall traffic environment in real time, has drawn researchers’ attention. With the new data source, traffic controllers should be able to make smarter decisions. A lot of work has been done to develop a new traffic signal control pattern under connected-vehicle environment. This paper provides a comprehensive review of these studies, aiming at sketching out the state of the arts in this research field. Several basic control problems, communication, control input, and objectives, are briefly introduced. The commonly used optimization models for this problem are summarized into three types: rule-based models, mathematical programming-based models, and artificial intelligence-based models. Then some major technical issues are discussed in detail. Finally, we raise the limitation of the existing studies and give our perspectives of the future research directions.