In this article, the work on Ge nanocrystals embedded in dielectric films formed by phase separation from supersaturated solid solutions is reviewed. Different methods to synthesize supersaturated solid solutions are covered, e.g., magnetron sputtering, ion implantation, and chemical vapor deposition. The phase separation is activated by subsequent high temperature annealing. Important parameters that influence the formation and properties of the Ge nanocrystals are discussed. Various matrix materials like SiO2, Al2O3, HfO2, HfAlOx, Lu2O3, ZrO2, TaZrOx, and Si3N4 are reported in the literature. The influence of the matrix on the formation and properties of the Ge nanocrystals is addressed in this review. Ge nanocrystals are investigated for applications such as charge storage nodes in nonvolatile memory devices or as silicon technology compatible light emitters. A key to establish these applications seems to be embedding the Ge nanocrystals in still amorphous matrices. This could help to avoid grain boundaries that act as leakage paths for electrical charges (unfavorable for nonvolatile memories) and facilitate defects, which could act as recombination centers (unfavorable for light emitters). A further important point is the synthesis of size and position controlled Ge nanocrystals. Both aspects are reviewed for Ge nanocrystals embedded in the mentioned matrix materials.