We review the current understanding of the role of topology in non-Hermitian (NH) systems, and its far-reaching physical consequences observable in a range of dissipative settings. In particular, we elucidate how the paramount and genuinely NH concept of exceptional degeneracies, at which both eigenvalues and eigenvectors coalesce, leads to phenomena drastically distinct from the familiar Hermitian realm. An immediate consequence is the ubiquitous occurrence of nodal NH topological phases with concomitant open Fermi-Seifert surfaces, where conventional band-touching points are replaced by the aforementioned exceptional degeneracies. We furthermore discuss new notions of gapped phases including topological phases in single-band systems, and clarify how a given physical context may affect the symmetry-based topological classification. A unique property of NH systems with relevance beyond the field of topological phases consists in the anomalous relation between bulk-and boundary-physics, stemming from the striking sensitivity of NH matrices to boundary conditions. Unifying several complementary insights recently reported in this context, we put together a clear picture of intriguing phenomena such as the NH bulk-boundary correspondence, and the NH skin effect. Finally, we review applications of NH topology in both classical systems including optical setups with gain and loss, electric circuits, mechanical systems, and genuine quantum systems such as electronic transport settings at material junctions, and dissipative cold-atom setups.