A critical re-assignment of the Rydberg states of iodomethane based on new polarization data J. Chem. Phys. 138, 134308 (2013) In this paper, we present a short account of some recent developments of self-interaction-free density-functional theory ͑DFT͒ and time-dependent density-functional theory ͑TDDFT͒ for accurate and efficient treatment of the electronic structure, and time-dependent quantum dynamics of many-electron atomic and molecular systems. The conventional DFT calculations using approximate and explicit exchange-correlation energy functional contain spurious self-interaction energy and improper long-range asymptotic potential, preventing reliable treatment of the excited, resonance, and continuum states. We survey some recent developments of DFT/TDDFT with optimized effective potential ͑OEP͒ and self-interaction correction ͑SIC͒ for both atomic and molecular systems for overcoming some of the above mentioned difficulties. These DFT ͑TDDFT͒/ OEP-SIC approaches allow the use of orbital-independent single-particle local potential which is self-interaction free. In addition we discuss several numerical techniques recently developed for efficient and high-precision treatment of the self-interaction-free DFT/TDDFT equations. The usefulness of these procedures is illustrated by a few case studies of atomic, molecular, and condensed matter processes of current interests, including ͑a͒ autoionizing resonances, ͑b͒ relativistic OEP-SIC treatment of atomic structure ͑Z = 2-106͒, ͑c͒ shell-filling electronic structure in quantum dots, ͑d͒ atomic and molecular processes in intense laser fields, including multiphoton ionization, and very-high-order harmonic generation, etc. For the time-dependent processes, an alternative Floquet formulation of TDDFT is introduced for time-independent treatment of multiphoton processes in intense periodic or quasiperiodic fields. We conclude this paper with some open questions and perspectives of TDDFT.