Abstract. We survey the conceptual framework and several applications of the iterative compression technique introduced in 2004 by Reed, Smith, and Vetta. This technique has proven very useful for achieving a number of recent breakthroughs in the development of fixed-parameter algorithms for NP-hard minimization problems. There is a clear potential for further applications as well as a further development of the technique itself. We describe several algorithmic results based on iterative compression and point out some challenges for future research.