Significant advancements in the 2-micron laser development have been made recently. Solid-state 2-micron laser is a key subsystem for a coherent Doppler lidar that measures the horizontal and vertical wind velocities with high precision and resolution. The same laser, after a few modifications, can also be used in a Differential Absorption Lidar (DIAL) system for measuring atmospheric CO2 concentration profiles. The world record 2-micron laser energy is demonstrated with an oscillator and two amplifiers system. It generates more than one joule per pulse energy with excellent beam quality. Based on the successful demonstration of a fully conductive cooled oscillator by using heat pipe technology, an improved fully conductively cooled 2-micron amplifier was designed, manufactured and integrated. It virtually eliminates the running coolant to increase the overall system efficiency and reliability. In addition to technology development and demonstration, a compact and engineering hardened 2-micron laser is under development. It is capable of producing 250 mJ at 10 Hz by an oscillator and one amplifier. This compact laser is expected to be integrated to a lidar system and take field measurements. The recent achievements push forward the readiness of such a laser system for space lidar applications. This paper will review the developments of the state-of-the-art solid-state 2-micron laser.