Carbon emission reduction and steel slag (SS) treatment are challenges in the steel industry. The accelerated carbonation of SS and carbonated steel slag (CSS) as a supplementary cementitious material (SCM) in cement can achieve both large-scale utilization of SS and CO2 emission reduction, which is conducive to low-carbon sustainable development. This paper presents the utilization status of CSS. The accelerated carbonation route and its effects on the properties of CSS are described. The carbonation reaction of SS leads to a decrease in the average density, an increase in the specific surface area, a refinement of the pore structure, and the precipitation of different forms of calcium carbonate on the CSS surface. Carbonation can increase the specific surface area of CSS by about 24-80%. The literature review revealed that the CO2 uptake of CSS is 2-27 g/100 g SS. The effects of using CSS as an SCM in cement on the mechanical properties, workability, volume stability, durability, environmental performance, hydration kinetics, and microstructure of the materials are also analyzed and evaluated. Under certain conditions, CSS has a positive effect on cement hydration, which can improve the mechanical properties, workability, bulk stability, and sulfate resistance of SS cement mortar. Meanwhile, SS carbonation inhibits the leaching of heavy metal ions from the solid matrix. The application of CSS mainly focuses on material strength, with less attention being given to durability and environmental performance. The challenges and prospects for the large-scale utilization of CSS in the cement and concrete industry are described.