Iron is an essential micronutrient of phytoplankton. Iron plays an important role in many biological processes such as nitrogen assimilation, N2 fixation, photosynthetic and respiratory electron transport, and porphyrin biosynthesis. Therefore, the regulation effects of iron should be considered besides nitrogen and phosphorus during the treatment of eutrophication lakes process. Remote sensing technology has been recognized as an effective measure in monitoring eutrophicated water bodies which could be used to timely monitor the distribution and growth status of algal on a large scale. The iron concentration fluctuation may have an important influence on the metabolic activity of the algal cells, and the spectral reflectivity could reflect the physiological characteristics of algal. The relationship between land features and their spectral characteristics is important for the interpretation of remote sensing images. Studies of algal spectral propertises under different iron-supply would be meaningful for determining the bloom and developing the remote sensing warning system of lake eutrophication. In the present paper, the effects of iron on the growth of algal and the advances in studies of algal spectrum are summarized based on the iron hypothesis. Furthermore, the application of spectral properties of algal under different iron-supply in early-warning mechanism of lake eutrophication is prospected.