Butyric acid is a type of short chain fatty acid and an important nutrient in intestinal epithelial cells. In addition to its important role in intestinal health, it has application value in anti-tumor, treatment of neuritis and diabetes. At the same time, based on the demand for green development in the livestock industry, its anti-inflammatory effect can avoid the abuse of antimicrobial agents. As a green, pollution-free, and residue-free new feed, butyric acid ensures the sustainable and healthy development of the livestock industry. This article mainly summarizes the production of butyric acid in the intestine, its effects on the balance of gut microbiota, digestion ability, and inflammation in humans and animals, elaborates its application in human health and animal production.