Synchrotron radiation is pulsed radiation generated by bunches of charged particles with relativistic energies. Due to high intensity, high spatial/time resolution and high penetration depth, the synchrotron-based high-energy X-ray diffraction (HE-XRD) technique can be used to characterize the evolution of the multi-scale microstructures in engineering materials. By applicating the in-situ experimental instrument, the HE-XRD provides rich information on experimental inputs for establishing various micro-mechanical models of engineering materials under interaction of multiple external stress, temperature, and/or magnetic fields. Moreover, HE-XRD provides also powerful tools for revealing the damage and failure mechanisms of advanced materials and evaluating performance of engineering components during usage. In this paper, the basic principles of synchrotron radiation and HE-XRD are briefly introduced and its applications to deformation, phase transformation and recrystallization are presented, including the micromechanical behavior and microstructure evolution of advanced multiphase materials with high strength, the influence of external fields on the phase transformation behaviors of thermal and ferromagnetic shape-memory alloys and nanowire-reinforced shape-memory composites, etc. Finally, based on the further development of advanced photon sources, the future applications of HE-XRD technology in higher time resolution and multiple actual environment is prospected.