The nature and properties of “smart” colloidal microgels are reviewed. Detailed descriptions including mechanistic information are reported with respect to the preparation of a number of physically different microgel structures including homopolymers, copolymers, polyelectrolyte, and core–shell type materials. The principal techniques used for the characterization of microgels are described, including dynamic light scattering and differential scanning calorimetery. Microgel properties are reviewed with respect to temperature sensitivity, pH sensitivity, colloid stability, rheological behavior, osmotic deswelling, and the influence of copolymers on microgels. Applications of these types of materials are also discussed and, include drug delivery devices, binding/adsorption agents, and catalytic compounds.