This application provides a method for determining a precoding matrix set, so as to avoid a case in which a relatively large quantity of precoding matrices in a precoding matrix set cannot be used, thereby improving system performance. A terminal device receives indication information from a network device, and determines a second precoding matrix set front a first precoding matrix set whose rank is R based on the indication information. Each precoding matrix W in the first precoding matrix set satisfies W=W1×W2, the second precoding matrix set is a proper subset of the first precoding matrix set, and the second precoding matrix set does not include W=W1×W2 that satisfies the specific condition in the first precoding matrix set.