Visible light communication (VLC) is an advanced, highly developed optical wireless communication (OWC) technology that can simultaneously provide lighting and high-speed wireless data transmission. A VLC system has several key advantages: ultra-high data rate, secure communication channels, and a lack of interference from electromagnetic (EM) waves, which enable a wide range of applications. Light-emitting diodes (LEDs) have been considered the optimal choice for VLC systems since they can provide excellent illumination performance. However, the quantum confinement Stark effect (QCSE), crystal orientation, carrier lifetime, and recombination factor will influence the modulation bandwidth, and the transmission performance is severely limited. To solve the insufficient modulation bandwidth, micro-LEDs (µ-LEDs) and laser diodes (LDs) are considered as new ideal light sources. Additionally, the development of modulation technology has dramatically increased the transmission capacity of the system. The performance of the VLC system is briefly discussed in this review article, as well as some of its prospective applications in the realms of the industrial Internet of Things (IoT), vehicle communications, and underwater wireless network applications.