The emerging perovskite solar cells have been recognized as one of the most promising new-generation photovoltaic technologies owing to their potential of high efficiency and low production cost. However, the current perovskite solar cells suffer from some obstacles such as non-radiative charge recombination, mismatched absorption, light induced degradation for the further improvement of the power conversion efficiency and operational stability towards practical application. The rare-earth elements have been recently employed to effectively overcome these drawbacks according to their unique photophysical properties. Herein, the recent progress of the application of rare-earth ions and their functions in perovskite solar cells were systematically reviewed. As it was revealed that the rare-earth ions can be coupled with both charge transport metal oxides and photosensitive perovskites to regulate the thin film formation, and the rare-earth ions are embedded either substitutionally into the crystal lattices to adjust the optoelectronic properties and phase structure, or interstitially at grain boundaries and surface for effective defect passivation. In addition, the reversible oxidation and reduction potential of rare-earth ions can prevent the reduction and oxidation of the targeted materials. Moreover, owing to the presence of numerous energetic transition orbits, the rare-earth elements can convert low-energy infrared photons or high-energy ultraviolet photons into perovskite responsive visible light, to extend spectral response range and avoid high-energy light damage. Therefore, the incorporation of rare-earth elements into the perovskite solar cells have demonstrated promising potentials to simultaneously boost the device efficiency and stability.