Abstract: Liquid phase catalytic exchange (LPCE) between liquid water and gaseous hydrogen has been developed for various applications, such as tritium recovery, water upgrade and heavy-water production. Good wetproofing properties of the hydrophobic catalysts can make the reaction to proceed smoothly. In this article, the preparation methods of the hydrophobic catalysts and the factors affecting the catalytic activities are reviewed. In particular, progress on the hydrophobic Pt/C/inert carrier catalysts is introduced, including the selection of inert carrier and active metal carrier, and the preparation methods of carbon-supported Pt based catalysts. Basic research activities on controllable fabrication of hydrophobic catalysts are discussed, including the LPCE reaction mechanism, and the relation between the microstructure of active metal and the catalytic activity, etc. Finally, questions remaining to be answered and future directions in the field of hydrophobic catalysts are discussed.