Lead halide perovskite nanocrystals (NCs) are receiving a lot of attention nowadays, due to their exceptionally high photoluminescence quantum yields reaching almost 100% and tunability of their optical band gap over the entire visible spectral range by modifying composition or dimensionality/size. We review recent developments in the direct synthesis and ion exchange-based reactions, leading to hybrid organic-inorganic (CH 3 NH 3 PbX 3 ) and all-inorganic (CsPbX 3 ) lead halide (X = Cl, Br, I) perovskite NCs, and consider their optical properties related to quantum confinement effects, single emission spectroscopy and lasing. We summarize recent developments on perovskite NCs employed as an active material in several applications such as light-emitting devices, solar cells and photodetectors, and provide a critical outlook into the existing and future challenges.