Theories, simulations and experiments on vortex dynamics in quasi-two-dimensional magnetic materials are reviewed. These materials can be modelled by the classical two-dimensional anisotropic Heisenberg model with XY (easy-plane) symmetry. There are two types of vortices, characterized by their polarization (a second topological charge in addition to the vorticity): Planar vortices have Newtonian dynamics (evenorder equations of motion) and exhibit strong discreteness effects, while non-planar vortices have non-Newtonian dynamics (odd-order equations of motion) and smooth trajectories. These results are obtained by a collective variable theory based on a generalized travelling wave ansatz which allows a dependence of the vortex shape on velocity, acceleration etc.. An alternative approach is also reviewed and compared, namely the coupling of the vortex motion to certain quasi-local spinwave modes. The influence of thermal fluctuations on single vortices is investigated. Different types of noise and damping are discussed and implemented into the microscopic equations which yields stochastic equations of motion for the vortices. The stochastic forces can be explicitly calculated and a vortex diffusion constant is defined. The solutions of the stochastic equations are compared with Langevin dynamics simulations. Moreover, noise-induced transitions between opposite polarizations of a vortex are investigated. For temperatures above the Kosterlitz-Thouless vortex-antivortex unbinding transition, a phenomenological theory, namely the vortex gas approach, yields central peaks in the dynamic form factors for the spin correlations. Such peaks are observed both in combined Monte Carlo-and Spin Dynamics-Simulations and in inelastic neutron scattering experiments. However, the assumption of ballistic vortex motion appears questionable.