Magnetic susceptibility (MS) is a powerful tool, which is being applied increasingly on sedimentary rocks to constrain stratigraphic correlations, or as a palaeo-environmental or palaeoclimatic tool. The origin of the magnetic minerals responsible for the variations in MS can be linked to various phenomena such as detrital inputs, pedogenesis, bacterial precipitation or diagenesis. Therefore, it is critical to improve our knowledge of the origin of the MS signal in order to apply it for correlations or as a proxy. Here, we present a synthesis of the techniques that can be applied to get a better understanding of the origin of the MS signal, through comparison with other palaeo-environmental proxies, through magnetic measurements or through dissolution and direct observation of the extracted minerals. We also propose an overview of the different techniques applied in order to use MS as a correlation tool, and we show various examples of successful applications of MS as a recorder of change in past sea-level and climate. We also present the main results and activities of the IGCP-580 project 'Application of magnetic susceptibility as a palaeoclimatic proxy on Palaeozoic sedimentary rocks and characterization of the magnetic signal'.