Depression is a common mental illness. Currently, there is no effective way to treat depression. Oxytocin (OT) is a neuropeptide secreted by the paraventricular nucleus and the supraoptic nucleus neurons in the hypothalamus. OT is involved in a variety of complex neuropsychiatric activities under physiological and pathological conditions. In recent years, many clinical and basic studies have shown that OT can relieve depressive symptoms through multiple mechanisms. This article reviews the research progress of the physiological role of OT, the level of OT secretion in depression, the effect of OT on depression-related hormones, brain regions, neural plasticity and oxidative stress. Our review highlights the potential administration of OT in the treatment of depression.