Schmallenberg virus (SBV) infection is an emerging infectious disease of ruminants first described in Germany in November, 2011. Since then it has spread very rapidly to several European countries. The disease is characterised by fever, reduced milk production and diarrhoea in cattle and abortions, stillbirths and foetal abnormalities in sheep and goats. SBV is an enveloped, negative-sense, segmented, single-stranded RNA virus, classified in the genus Orthobunyavirus of the Bunyaviridae family, and is closely related to Akabane, Ainoa and Shamonda viruses. As of now there is no vaccine available for SBV, which poses a serious threat to naive ruminant population. Owing to its recent discovery, our understanding of Schmallenberg viral disease and its pathology and pathogenesis is limited. This article reviews the data reported so far on this emerging disease with regard to aetiology, epidemiology, pathogenesis, pathology, diagnosis and control and discusses the future scenario and implications of the disease.