It is a practical strategy to screen for mutants in the research of plant functional genomics. Comparing with classical T-DNA knock-out mutagenesis technology by the loss-of-function mutation, the activation T-DNA tagging technique based on the gain-of-function mutation has its own particular advantages, mainly characterized by producing dominant mutants of genes with functional redundancy and easily cloning of the genes. First, the basic principle of activation tagging, and the progress of its application in the research on plant functional genomics was reviewed, especially in Arabidopsis and rice. The recent research progress in the mechanism of plant biotic and abiotic stress tolerance and of plant development unraveled by the method of activation tagging was then addressed. Finally, the limitation and prospects of this technique were discussed.