The historical background, research development, and the state-of-the-art o
f finite time thermodynamic theory and applications are reviewed from the p
oint of view of both physics and engineering. The emphasis is on the perfor
mance optimization of thermodynamic processes and devices with finite-time
and/or finite-size constraints, including heat engines, refrigerators, heat
pumps, chemical reactions and some other processes, with respect to the fo
llowing aspects: the study of Newton's law systems, an analysis of the effe
ct of heat resistance and other irreversible loss models on the performance
, an analysis of the effect of heat reservoir models on the performance, as
well as the application for real thermodynamic processes and devices. It i
s pointed out that the generalized thermodynamic optimization theory is the
development direction of finite thermodynamics in the future.