Wisdom is a general psychological quality that integrates morality and intelligence. It is learned from life experiences, serves as an important symbol of successful aging, and is the ideal endpoint of human development. Research has shown that self-reported measurements, such as the three-dimensional wisdom scale (3D-WS), self-assessed wisdom scale (SAWS), and the adult self-transcendence inventory (ASTI), and performance measures such as the Berlin wisdom paradigm (BWP) and wise reasoning (WR), perform well in the assessment of older adults’ wisdom. The development of wisdom in old age is influenced by internal factors such as openness, self-reflection, emotion regulation, and personality growth, as well as external factors such as education level, critical life experiences, and the social environment. In older adults, wisdom obtained from life experience improves well-being and life satisfaction, and reduces social alienation, loneliness, and depression. Future research should develop multi-faceted and integrated tools for the evaluation of older adults’ wisdom, to further investigate the predictive factors, effects, and internal mechanisms of wisdom in old age, and to explore the intervention and cultivating strategies of older adults’ wisdom in the community care services.