As an excellent giant-magnetostrictive material, Tb-Dy-Fe alloys(based on Tb0.27-0.30Dy0.73-0.70Fe1.9-2Laves compound) can be applied in many engineering fields, such as sonar transducer systems, sensors, and micro-actuators. However, the cost of the rare earth elements Tb and Dy is too high to be widely applied for the materials. Nowadays, there are two different ways to substitute for these alloying elements. One is to partially replace Tb or Dy by cheaper rare earth elements, such as Pr, Nd, Sm and Ho; and the other is to use non-rare earth elements, such as Co, Al, Mn, Si, Ce, B, Be and C, to substitute Fe to form single MgCu_2-type Laves phase and a certain amount of Re-rich phase, which can reduce the brittleness and improve the corrosion resistance of the alloy. This paper systemically introduces the development, the fabrication methods and the corresponding preferred growth directions of Tb-Dy-Fe alloys. In addition, the effects of alloying elements and heat treatment on magnetostrictive and mechanical properties of Tb-Dy-Fe alloys are also reviewed, respectively. Finally, some possible applications of Tb-Dy-Fe alloys are presented. As an excellent giant-magnetostrictive material, Tb-Dy-Fe alloys (based on Tb0.27-0.30Dy0.73-0.70Fe1.9-2Laves compound) can be applied in many engineering fields, such as sonar transducer systems, sensors, And micro-actuators. However, the cost of the rare earth elements Tb and Dy is too high to be widely applied for the materials. Nowadays, there are two different ways to substitute for these alloying elements. One is to partially replace Tb or Dy by cheaper rare earth elements, such as Pr, Nd, Sm and Ho; and the other is to use non-rare earth elements, such as Co, Al, Mn, Si, Ce, B, Be and C, to substitute Fe to form single MgCu_2-type Laves phase and a certain amount of Re-rich phase, which can reduce the brittleness and improve the corrosion resistance of the alloy. This paper systemically introduced the development, the fabrication methods and the corresponding preferred growth directions of Tb- Dy-Fe alloys. In addition, the effects of alloying elements and heat treatment on magnet ostrictive and mechanical properties of Tb-Dy-Fe alloys are also reviewed, respectively. Finally, some possible applications of Tb-Dy-Fe alloys are presented.