Tai Chi, developed from a kind of martial arts into a new form of exercise therapy, has received wide attention. Studies on the rehabilitation effects of Tai Chi and its mechanism have been conducted by researches in both China and other countries, and most of these studies are concerned with Tai Chi’s role in balance improvement. According to the purpose of the study and the evaluation index, the rehabilitation function and biomechanical characteristics of Tai Chi exercising were reviewed. The biomechanical mechanism of rehabilitation function was discussed by comparing the differences between the research method and the conclusion. Due to the lack of a unified specification for the standard and duration of Tai Chi exercising, some study result are inconsistent. Enhancing biomechanical researches on Tai Chi and setting different practicing standards for people with various health conditions will be a main direction for Tai Chi study in the future.