Cement paste is known to react with atmospheric carbon dioxide. Carbonation of cement paste has long been recognized as one of the causes of reinforcement corrosion. On the other hand, carbonation causes numerous chemomechanical changes in the cement paste, most notably changes in strength, porosity, pore size distribution, and chemistry. Furthermore, it can cause shrinkage and cracking of the cementitious matrix. The present review summarises the state of the art regarding the understanding and consequences of carbonation of cement paste. Apart from the passive process of reaction of atmospheric CO2 with cement paste, carbonation is sometimes used on purpose in order to improve certain properties of cementitious materials. This review further summarises recent efforts regarding active use of carbonation as a tool for manipulating certain properties of cement based materials.