Provided are a state switching method, a network device and a terminal device. The method is used for a first terminal device in an inactive state; the inactive state indicates that the first terminal device and a network device are in a disconnection state, and the first terminal device and the network device retain context information of the first terminal device. The method includes: generating indication information, which is used to indicate the first terminal device to release the context information, or not to release the context information; and sending the indication information to the first terminal device.