The properties of transition metal compounds are largely determined by nontrivial interplay of different degrees of freedom: charge, spin, lattice, but also orbital ones. Especially rich and interesting effects occur in systems with orbital degeneracy. They result in the famous Jahn-Teller effect leading to a plethora of consequences, in static and in dynamic properties, including nontrivial quantum effects. In the present review we discuss the main phenomena in the physics of such systems, paying central attention to the novel manifestations of those. After shortly summarising the basic phenomena and their description, we concentrate on several specific directions in this field. One of them is the reduction of effective dimensionality in many systems with orbital degrees of freedom due to directional character of orbitals, with concomitant appearance of some instabilities leading in particular to the formation of dimers, trimers and similar clusters in a material. The properties of such cluster systems, largely determined by their orbital structure, are discussed in detail, and many specific examples of those in different materials are presented. Another big field which acquired special significance relatively recently is the role of relativistic spin-orbit interaction. The mutual influence of this interaction and the more traditional Jahn-Teller physics is treated in details in the second part of the review. In discussing all these questions special attention is paid to novel quantum effects in those.