Since 2014, China has been implementing the Sponge City Construction initiative, which represents an enormous and unprecedented effort by any government in the world for achieving urban sustainability. According to preliminary estimates, the total investment on the Sponge City Plan is roughly 100 to 150 million Yuan (RMB) ($15 to $22.5 million) average per square kilometer or 10 Trillion Yuan (RMB) ($1.5 Trillion) for the 657 cities nationwide. The Sponge City Plan (SCP) calls for the use of natural processes such as soil and vegetation as part of the urban runoff control strategy, which is similar to that of low impact development (LID) and green infrastructure (GI) practices being promoted in many parts of the world. The SCP includes as its goals not only effective urban flood control, but also rainwater harvest, water quality improvement and ecological restoration. So far, the SCP implementation has encountered some barriers and challenges due to many factors. The present paper presents a review of those barriers and challenges, offers discussions and recommendations on several technical aspects such as control goals and objectives; planning/design and construction of LID/GI practices; performance evaluation. Several key recommendations are proposed on Sponge City implementation strategy, Site-specific regulatory framework and technical guidance, Product innovation and certification, LID/GI Project financing, LID/GI professional training and certification, public outreach and education. It is expected that the successful implementation of the SCP not only will bring about a sustainable, eco-friendly urbanization process in China, but also contribute enormously to the LID/GI research and development with the vast amount of relevant data and experiences generated from the Sponge City construction projects.