Silicon carbide ceramic matrix composites (SiC–CMC), characterized by low density and hightemperature resistance, show broad application prospects in hot-section components of aero-engines. However, hightemperature wet-oxygen corrosion remains a key challenge restricting their applications. This article provides a comprehensive review of the wet-oxygen corrosion resistance, microstructure, mechanical properties and primary preparation methods when rare earth compounds: Including rare earth phosphates, rare earth silicates, rare earth oxides, rare earth silicide carbides, and Si–Y eutectic alloys, are incorporated into the SiC–CMC matrix, interphase and coatings. Furthermore, it presents the critical challenges and prospects for rare earth compound-modified SiC–CMC technology.