Plasmids are important vehicles for rapid adaptation of bacterial populations to changing environmental conditions. To reduce the cost of plasmid carriage, it is thought that only a fraction of a local population carries plasmids or is permissive to plasmid uptake. Plasmids provide various accessory traits which might be beneficial under particular conditions. The genetic variation generated by plasmid carriage within populations ensures the robustness towards environmental change. Plasmid-mediated gene transfer plays an important role not only in the mobilization and dissemination of antibiotic resistance genes but also in the spread of degradative pathways and pathogenicity determinants of pathogens. Here we summarize the state-of-the-art methods to study the occurrence, abundance and diversity of plasmids in environmental bacteria. Increasingly, cultivation independent total community DNA methods are being used to characterize and quantify the diversity and abundance of plasmids in relation to various biotic and abiotic factors. An improved understanding of the ecology of plasmids and their hosts is crucial in the development of intervention strategies for antibiotic resistance gene spread. We discuss the potentials and limitations of methods used to determine the host range of plasmids as the ecology of plasmids is tightly linked to their hosts. The recent advances in sequencing technologies provide an enormous potential for plasmid classification, diversity and evolution studies but numerous challenges still exist.