Abstract. Ultrasonic melt processing attracts a lot of interest both from academic researchers and industry. Despite a long history of the subject, with first accounts dating back to the 1930s, the physics, mechanisms and practical applications are still under development. In the second half of the XXth century, pilot-and industrial scale applications of ultrasonic processing of light alloys were demonstrated for melt degassing, filtration, grain refinement, melt atomisation, and zone refining. In the last 10 years the interest to ultrasonic melt processing grew with regard to understanding the underlying mechanisms of previously established effects, developing numerical models of ultrasonic cavitation and the development of nanocomposite technology. This review paper summarises the mechanisms involved in the ultrasonic melt processing, including cavitation, flows, nucleation, activation, fragmentation and their consequences for degassing, structure refinement and particle dispersion. Some typical mistakes made by researchers in performing experiments and in interpretation of the results are discussed. New advanced methods of studying ultrasonic treatment and phenomena are considered. The paper also gives an outlook to future developments and challenges.