2D organic-inorganic hybrid Ruddlesden-Popper perovskites (RPPs) have recently attracted increasing attention due to their excellent environmental stability, high degree of electronic tunability, and natural multiquantum-well structures. Although there is a rapid development of photoelectronic applications in solar cells, photodetectors, light emitting diodes (LEDs), and lasers based on 2D RPPs, the state-of-the-art performance is far inferior to that of the existing devices because of the limited understanding on fundamental physics, especially special photophysics in carrier dynamics, excitonic fine structures, excitonic quasiparticles, and spin-related effect. Thus, there is still plenty of room to improve the performances of photoelectronic devices based on 2D RPPs by enhancing knowledge on fundamental photophysics. This review highlights the special photophysics of 2D RPPs that is fundamentally different from the conventional 3D congeners. It also provides the most recent progress, debates, challenges, prospects, and in-depth understanding of photophysics in 2D perovskites, which is significant for not only boosting performance of solar cells, LEDs, photodetectors, but also future development of applications in lasers, spintronics, quantum information, and integrated photonic chips.