Disinfection is an essential process in wastewater treatment. Chlorine disinfection is a commonly used chemical disinfectant, but it produces harmful by-products that pose threats to human health and the ecological environment. Peracetic acid (PAA) is an oxidizing organic peracid and an emerging green disinfectant that can replace chlorine. This review systematically introduces the structural characteristics, disinfection properties, by-product formation characteristics, and biotoxicity of PAA disinfectants. The disinfection effect of PAA in wastewater treatment processes is also discussed, including the synergistic effect of PAA and UV coupling technology in wastewater disinfection, as well as the comprehensive influencing factors in the PAA disinfection process. Furthermore, specific applications of PAA in wastewater disinfection are summarized, including typical engineering application cases in North America and European countries, along with research progress in pilot-scale studies conducted in sewage treatment plants in China. Finally, an outlook is provided on the future development direction of PAA in the field of wastewater treatment and disinfection. Strategies and directions for improving and optimizing PAA disinfection technology are proposed to promote the widespread application of PAA green disinfection technology in sewage treatment plants in China.