Geometric phase is a unifying and central concept in physics, including optics. As a matter of fact, optics played a pivotal role from the inception of this new paradigm, as some of the first experimental demonstrations have been carried out in optics. A specific type of geometric phase was first introduced by Pancharatnam while investigating interference effects between different polarizations. This specific type of geometric phase, nowadays called the Pancharatnam–Berry phase, is related to the variation of light polarization, encompassing exotic properties when compared with the dynamic phase associated with the optical path. The most widespread manifestation of the Pancharatnam–Berry phase occurs in the presence of a twisted anisotropic material, yielding a point‐wise phase modulation proportional to the local rotation angle of the material. Here the basic mechanism behind the Pancharatnam–Berry phase is discussed. The various applications of this relatively original concept in photonics are then reviewed, presenting both the most important results and manufactured devices reported in literature. The interplay between geometric phase and diffraction occurring in bulk structures is discussed in detail. In the latter case it is shown how geometric phase can be harnessed to generate a new kind of optical waveguide without the necessity of any index gradient.