The intrinsic lattice distortion induced by Jahn-Teller-active ions reduces the symmetry of the coordination geometry and the degeneracy of d-orbitals, thereby stabilizing reaction intermediates on the catalyst surface and effectively regulating the electronic and ionic conductivities of electrode materials during charge-discharge processes, which in turn significantly influence the macroscopic properties of the materials. This review systematically elucidates the origin and triggering mechanisms of the Jahn-Teller distortion, outlines its primary characterization methods, and highlights the applications of this effect in functional materials such as catalytic conversion and energy storage, aiming to provide a systematic reference for an in-depth understanding of the structure-property relationship between the Jahn-Teller distortion and macroscopic material performance.