Kinetic relations are required in order to characterize nonclassical undercompressive shock waves and formulate a well-posed initial value problem for nonlinear hyperbolic systems of conservation laws. Such nonclassical waves arise in weak solutions of a large variety of physical models: phase transitions, thin liquid films, magnetohydrodynamics, CamassaHolm model, martensite-austenite materials, semi-conductors, combustion theory, etc. This review presents the research done in the last fifteen years which led the development of the theory of kinetic relations for undercompressive shocks and has now covered many physical, mathematical, and numerical issues. The main difficulty overcome here in our analysis of nonclassical entropy solutions comes from their lack of monotonicity with respect to initial data.First, a nonclassical Riemann solver is determined by imposing a single entropy inequality, a kinetic relation and, if necessary, a nucleation criterion. To determine the kinetic function, the hyperbolic system of equations is augmented with diffusion and dispersion terms, accounting for smallscale physical effects such as the viscosity, capillarity, or heat conduction of the material under consideration. Investigating the existence and properties of traveling wave solutions allows one to establish the existence, as well as qualitative properties, of the kinetic function. To tackle the initial value problem, a Glimm-type scheme based on the nonclassical Riemann solver is introduced, together with generalized total variation and interaction functionals which are adapted to nonclassical shocks. Next, the strong convergence of the vanishing diffusion-dispersion approximations for the initial