CO oxidation is one of the most studied reactions in heterogeneous catalysis. It is present in air cleaning and automotive emission control. It also participates in the removal of CO from streams of hydrogen used in fuel cells. Because of the competitive adsorption of CO and O2 over active sites, the use of Pt-based catalysts for low-temperature CO oxidation remains a challenge. Recently, great progress has been made with catalysts containing Pt-Fe species because of the contribution of Fe species to O2 activation. The structure-activity relationship and reaction mechanisms have been investigated with various Pt-Fe catalysts. In this Perspective, we give a summary of the recent advances of low-temperature CO oxidation over Pt-Fe catalysts with a focus on the synergistic effect of Pt and Fe species in the CO and O2 activation of catalytic reactions. Future prospects for the preparation of highly effective Pt-Fe catalysts are also proposed.