Colorectal cancer (CRC) is one of the most common malignant life-threatening tumors, with serious impacts on patient quality of life. Src homology 2 domain-containing protein tyrosine phosphatase (SHP2) has recently become a hot topic in the field of cancer research, and has demonstrated a close relationship with CRC. SHP2, encoded by the PTPN11 gene, is a non-receptor tyrosine kinase commonly present in various tissues and cells of the human body. Existing research shows that SHP2 plays a crucial role in regulating CRC and colitis-associated colon cancer (CAC), and the emergence of SHP2 allosteric inhibitors has identified SHP2 as a potential new therapeutic target for patients with CRC. Here we review the structure of SHP2 and its roles in CRC and CAC.