Tracing techniques have been widely employed in the investigation of soil erosion. Using 137Cs, 7Be, 210Pb, and REE (Rare Earth Element), quantitative information on soil erosion processes and mechanisms have been obtained. Magnetic has also increasingly been tested in recent years. With measured temporal and spatial variability of natural magnetism, sources of mobilized sediments have been assessed using different parameters. Man-made magnetic tracers were also applied in experimental plot to study the temporal and spatial variability of erosion intensities; observe the evolvement of erosion types and erosion processes. Comparatively speaking, the application of magnetic tracers is still limited and under development. This paper tried to explain the basic theory of using the tracers in erosion study; to review the existing research results; and explore its potentials. The trends for future development and questions have to be solved are also discussed.