Abstract: Embryonic stem cell-derived macrophages (EDMs) are a unique subset of macrophages derived from embryonic progenitor cells, which seed in specific tissues during embryos. In normal liver, EDMs have self-renewal capacity to maintain their own number, independently of bone marrow contribution during steady state. During inflammatory response of liver, EDMs polarizes from M1 to M2 phenotype, with functions of immune surveillance, injury repair and homeostasis maintenance, so as to effectively avoid the occurrence and malignant transformation of chronic inflammation by balancing type Ⅰ and type Ⅱ inflammatory reactions. EDMs are located in the hepatic sinusoid and can phagocytize circulating tumor cells. However, EDMs interact with the bone marrow-derived monocytic cell line in the late stage of hepatocellular carcinoma (HCC), constituting the immunosuppressive microenvironment. In this review, the ontogeny of EDMs and their function in liver on maintaining steady state and mediating inflammation, and so on were discussed.