Soft soil sites can amplify the peak acceleration by a factor of 1.5 to 3.5 and exhibit the filtering effect on seismic waves. This effect results in the attenuation of high frequencies, amplification of low frequencies, and extension of the predominant period of ground motion. Consequently, soft soil sites have a more pronounced impact on isolation buildings constructed on them. The seismic isolation structure design typically involves assuming rigid foundation for calculations. However, the soil properties can significantly impact the dynamic response of the structure, affecting factors such as input ground motion, changes in vibration characteristics, radiation energy dissipation, and material damping energy dissipation. Therefore, neglecting these influences and relying solely on the rigid foundation assumption for calculations can lead to significant errors in the final seismic response analysis of the structure. Currently, there are numerous LNG storage tanks, museums, and other isolation buildings constructed on soft soil sites. Therefore, research on seismic isolation measures for soft soil sites holds significant practical importance. In light of this, this paper, firstly, provides a systematic summary of seismic isolation strategies and engineering applications for soft soil sites. Secondly, it further discusses advancements in research on the dynamic interactions of soil–isolated structures, covering analytical methods, numerical investigations, and experimental studies on soft soil sites. Lastly, the paper concludes with insights on current research progress and prospects for further studies.