With the development of science and technology, precision-strike weapons has been considered to be important for winning victory in military field. Laser guidance is a major method to execute precision-strike in modern warfare. At present, the problems of primary stage of Laser guidance has been solved with endeavors of countries. Several technical aspects of laser-beam riding guided system have been mature, such as atmosphere penetration of laser beam, clutter inhibition on ground, laser irradiator, encoding and decoding of laser beam. Further, laser beam quality, equal output power and atmospheric transmission properties are qualified for warfare situation. Riding guidance instrument is a crucial element of Laser-beam riding guided system, and is also a vital element of airborne, vehicle-mounted and individual weapon. The optical system mainly consist of sighting module and laser-beam guided module. Photoelectric detector is the most important sensing device of seeker, and also the key to acquire the coordinate information of target space. Currently, in consideration of the 1.06 u m of wavelength applied in all the semi-active laser guided weapons systems, lithium drifting silicon photodiode which is sensitive to 1.06 u m of wavelength is used in photoelectric detector. Compared to Solid and gas laser, diode laser has many merits such as small volume, simple construction, light weight, long life, low lost and easy modulation. This article introduced the composition and operating principle of Laser-beam riding guided system based on 980 nm diode laser, and made a analysis of key technology; for instance, laser irradiator, modulating disk of component, laser zooming system. Through the use of laser diode, Laser-beam riding guided system is likely to have smaller shape and very light.