The propagation of acoustic waves is a fundamentally non-linear process, and only waves with infinitesimally small amplitudes may be described by linear expressions. In practice, all ultrasound propagation is associated with a progressive distortion in the acoustic waveform and the generation of frequency harmonics. At the frequencies and amplitudes used for medical diagnostic scanning, the waveform distortion can result in the formation of acoustic shocks, excess deposition of energy, and acoustic saturation. These effects occur most strongly when ultrasound propagates within liquids with comparatively low acoustic attenuation, such as water, amniotic fluid, or urine. Attenuation by soft tissues limits but does not extinguish these non-linear effects. Harmonics may be used to create tissue harmonic images. These offer improvements over conventional B-mode images in spatial resolution and, more significantly, in the suppression of acoustic clutter and side-lobe artefacts. The quantity B/A has promise as a parameter for tissue characterization, but methods for imaging B/A have shown only limited success. Standard methods for the prediction of tissue in-situ exposure from acoustic measurements in water, whether for regulatory purposes, for safety assessment, or for planning therapeutic regimes, may be in error because of unaccounted non-linear losses. Biological effects mechanisms are altered by finite-amplitude effects.