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In this paper, we summarize the theoretical development on the electric dipole moment (CEDM) of light nuclei. We first describe the nucleon level CP violation and its parametrization. We then present the results of calculations of the EDM of light nuclei in the ab initio approach and in the cluster model. The analysis of the effect of several models beyond standard model (CBSM) is presented together with the prospects for its discovery. The advantage of the EDM of light nuclei is focused in the point of view of the many-body physics. The evaluations of the nuclear EDM generated by the -term and by the CP phase of the Cabibbo-Kobayashi-Maskawa (CKM) matrix are also reviewed. [ABSTRACT FROM AUTHOR]