Large shareholder plays an important role in corporate governance. The emergence of large shareholder reduces the cost agency between the shareholder and manager because of solving the freeriding caused by dispersed ownership structure. But it gives birth to another agency problem between large and minority shareholders. Reviewed were recent literatures on large shareholder governance and agency problem between large and minority shareholders from the angle of the condition of ownership concentration, large shareholder's motivation, large shareholder's effect on the company and the interest conflict between large and minority shareholders. The agency problem in Chinese companies was also analyzed.