In this article, we review the principles of macroscopic quantum electrodynamics and discuss a variety of applications of this theory to medium-assisted atom-field coupling and dispersion forces. The theory generalises the standard mode expansion of the electromagnetic fields in free space to allow for the presence of absorbing bodies. We show that macroscopic quantum electrodynamics provides the link between isolated atomic systems and magnetoelectric bodies, and serves as an important tool for the understanding of surface-assisted atomic relaxation effects and the intimately connected position-dependent energy shifts which give rise to Casimir-Polder and van der Waals forces. : 42.50.Nn, 42.50.Ct, 34.35.+a,
PACS